...July 7, 2023 Likely moderating sales growth in 2023 and 2024. Our base case for Hon Hai Precision Industry Co. Ltd. indicates a low-single-digit sales decline in 2023 and 2024, compared with 10.6% growth in 2022. That's based on our expectation of weaker iPhone unit sales over the period, as well as Apple Inc.'s diversification in the assembly of some iPhone models that were exclusively provided by Hon Hai previously. Sales growth for enterprise applications, particularly servers, could also turn weaker in 2023 due to a prolonged inventory correction. This is despite our view that server demand from cloud service providers remains relatively strong. This segment accounted for about 40% of Hon Hai's total server sales in 2022. In addition, the gloomy economic outlook could continue to depress demand for most consumer electronics, including PCs. Electric vehicle (EV) business requires time to bear fruit. Revenue from the company's EV business could remain low in 2023 and 2024 based on Hon...
