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Prior to World War II
A small pre-production batch of Hs 123A-0s was completed in 1936 for service evaluation by the Luftwaffe. This initial group was followed by the slightly modified Hs 123A-1 series, the first production examples. The service aircraft flew with an armoured headrest and fairing in place (a canopy was tested in the Hs 123V6) as well as removable main wheel spats and a faired tailwheel. The main weapon load of four SC50 50 kg (110 lb) bombs could be carried in lower wing racks along with an additional SC250 250 kg (550 lb) bomb mounted on a "crutch" beneath the fuselage. The usual configuration was to install an auxiliary fuel "drop" tank at this station that was jettisoned in emergencies. Two 7.92 mm (.312 in) MG 17 machine guns were mounted in the nose synchronized to fire through the propeller arc.
The aircraft entered service at StG 162 in autumn 1936. Its career as a dive bomber was cut short when the unit received its first Ju 87A the next year. Remaining Hs 123s were incorporated into the temporary Fliegergeschwader 100 at the time of the Munich Crisis. The Geschwader (wing) had been created as an emergency measure, equipped with obsolete aircraft and tasked with the ground attack role. With the signing of the Munich agreement, the crisis was over and the Geschwader was disbanded, the Gruppen being transferred to other established units. By 1939, despite its success in Spain, the Luftwaffe considered the Hs 123 obsolete and the Schlachtgeschwader ("close-support wings") had been disbanded with only one Gruppe, II.(Schl)/LG2 still equipped with the Hs 123.