From January to March, Hon Hai's sales totaled T$808.97 billion ($26.96 billion), down from T$988.34 billion in the fourth quarter and T$1 trillion in the first quarter last year.
"A quarterly decline was expected, but not a yearly decline," said KGI Securities analyst Ming-chi Kuo. "This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected."
Kao expects Hon Hai to post flat year-over-year sales for the second quarter which will put pressure on the company to perform in the second half of the year. Apple accounts for about 60-70% of the company's revenue; however, there has been no official confirmation that its sales drop is Apple related.