Taiwan’s Hon Hai Precision Industry Co. is lowering its long-term target for annual sales growth to 15 percent from twice that level previously, chairman Terry Gou said, as the manufacturer of Apple Inc. iPads and other gadgets confronts the constraints of its enormous size after decades of breakneck expansion.
Gou’s lower growth benchmark is driven by a recognition that a company as large as Hon Hai can’t keep growing at the same pace. Hon Hai’s revenue has increased more than thirtyfold in the past decade.
The company makes PCs, cellphones, videogame consoles and other products for most of the world’s biggest electronics brands, including Hewlett-Packard Co., Dell Inc., Nokia Corp. and Sony Corp. Among electronics-manufacturing services companies, Hon Hai’s revenue in the first quarter was larger than that of its next 10 competitors combined, according to research firm iSuppli. Hon Hai is larger by revenue than all but a handful of its clients.
(Source: The Wall Street Journal Online)