Tsann Kuen Enterprise Co Ltd (燦坤實業), the largest 3C (computers, communications and consumer electronics) product and home appliance retailer in Taiwan, yesterday reported growth in sales last month from a month earlier on the back of strong demand for tablet computers and smartphones.
Tsann Kuen posted NT$2.21 billion (US$76.8 million) in sales last month, up 5.83 percent from May and up 17.18 percent from a year earlier.
In the first six months of this year, the company’s sales totaled NT$13.86 billion, up 2.56 percent from a year earlier.
The retailer said demand for tablet computers was largely triggered by the release of Apple’s iPad 2, adding tablets and smartphones were the driver for the company’s sales growth in the first half of this year.
Tsann Kuen said demand for tablets was expected to continue to grow in the second half.
TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said 3C retailers have their peak sales season from June to -August as students go on summer vacation.
“The growth in June sales is pretty much on seasonal factors as many student consumers seize the opportunity to buy new computers or handheld devices before school begins,” Shih said.
“I expect the company’s sales will continue to grow over the next couple of months,” Shih added.
In addition, Tsann Kuen said last month’s sales were also boosted by higher demand for air conditioners and electric fans as the summer weather heated up, adding such seasonal home appliances are expected to lead robust sales through this month and next month.
3C products account for about 55 percent of Tsann Kuen’s total sales, while home appliances make up the remaining 45 percent.
So far this year, the 3C retailer said it has opened six outlets, and will open another four by the end of this year to meet demand from an increasing number of Chinese tourists to Taiwan.
Tsann Kuen operates about 330 stores nationwide.
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