Taiwanese electronics manufacturers that supply components to Apple Inc for the iPhone saw their shares soar yesterday after Apple Inc demonstrated the widely anticipated handset at its MacWorld conference and expo in San Francisco on Tuesday.
Shares of both Entery Industrial Co (恩得利工業), which supplies connectors and cables to iPhone, and frequency control maker TXC Corp (台灣晶技), rose to the daily limit to close at NT$39.4 and NT$58.8, respectively, on the Taiwan Stock Exchange.
Optimism over the upcoming launch of the iPhone also raised shares of Catcher Technology Co (可成企業), which makes stainless casings and mechanical parts, by 5.2 percent to NT$362.5, while Cheng Uei Precision Industry Co (正崴精密), a provider of connectors and Bluetooth modules, closed up 0.75 percent to NT$134.
"We believe the iPhone launch is positive for certain component makers in Taiwan," Macquarie Research Equities said in a report released yesterday.
Hon Hai Precision Industry Co (鴻海精密), the world's largest contract electronics manufacturer, and its handset-making unit Foxconn International Holdings Ltd (富士康控股), will make the phone, according to Macquarie Securities. It also said that Cheng Uei, Catcher and Entery should benefit the most because of their larger component exposure to iPhone.
Shares of Hon Hai rose 0.4 percent to close at NT$234 on the local bourse yesterday.
According to Ann Liang (梁嘉鈴), principal analyst at Gartner Inc's Taiwan branch, the makers are expected to continue to enjoy an upswing for the next six months, before the iPhone is formally introduced in the US in June.
Macquarie suggested that investors continue to accumulate shares especially of Cheng Uei and Catcher.
"We have been consistently positive on Cheng Uei due to its excellent profitability, its margin strength and its anticipated iPhone component order," the report said.
It was also upbeat on Catcher not only because of its exposure to iPhone, but also its high growth from both notebook and handset casings.
Apple CEO Steve Jobs said he expected the company to sell 10 million iPhones by the end of next year, accounting for 1 percent of the 1 billion handsets sold globally per year.
Targeting at the wide user base of the successful iPod music players, the new iPhone has a built-in camera and touch screen, is Bluetooth-enabled and can play 15 hours of music.
Though iPhone received rave reviews in the US, Liang said that its performance in Taiwan's market remained to be seen.
Sony Ericsson Mobile Communications has garnered a loyal fan base in Taiwan with its Walkman series, she said.
"As iPhone will only be launched in Asia next year, Apple will have a lot of catching up to do," she said.
But Macquarie believes that iPhone will be able to eat into the music phone market share, and "it is worth watching Sony Ericsson's market share."
If Apple manages to get a slice of the pie, it will impact Sony Ericsson's local component suppliers, such as keypad maker Ichia Technology Inc (毅嘉科技), the report said.
also see story:
Apple unleashes iPhone
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s