Low-cost, highly integrated production process Strong competitive position and consistently good operating performance Modest financial profile Diverse product lines High, though improving, degree of customer concentration Extremely competitive industry conditions Strong customer bargaining power and margin pressure The ratings on Hon Hai Precision Industry Co. Ltd. (Hon Hai) reflect the company's strong competitive position, consistently good operating performance, and modest financial profile, which have underpinned consistent sales and profit growth and the successful diversification of its customer base and product range. Counterbalancing factors include extremely competitive industry conditions and a business model that subjects the company to strong customer bargaining power and margin pressure. Hon Hai is one of the world's largest electronics contract manufacturers, with total revenue of Taiwan
