Wed, Nov 06, 2013 - Page 14 News List

Largan posts 10th straight month of sales growth on mobile device demand

PRETTY PICTURE?The handset camera lens maker is forecast to post 15 percent growth this month, for an 11th month of growth, but Apple seeks new suppliers

By Helen Ku  /  Staff reporter

Largan Precision Co (大立光), the world’s largest handset camera lens supplier, yesterday reported that sales grew for a 10th consecutive month last month to NT$2.92 billion (US$99.39 million) on the back of strong demand for mobile devices.

With increased orders for the newly launched iPhone 5S and 5C, Largan’s sales last month increased 10.17 percent month-on-month and 21.03 percent year-on-year to reach the third-highest level in the company’s history.

On Thursday, Largan told investors in a conference call that sales this month were forecast to exceed last month’s, meaning that the company could achieve month-on-month sales growth for 11 straight months since February.

“As a component supplier, Largan’s sales performance is tied with its clients’ businesses, particularly Apple Inc,” Taishin Securities Investment Advisory Co (台新投信) vice president Tony Huang (黃文清) said by telephone yesterday.

As demand for Apple’s new smartphones usually remains robust for two or three months after they are launched, Largan’s sales could post 15 percent month-on-month growth this month, Huang said.

GROWING COMPETITION

However, Fubon Securities Co (富邦證券) analyst Ange Wu (吳淵傑) said Largan is likely to face risks because its major client Apple is diversifying its suppliers.

“Intensifying competition between camera lens makers may pressure Largan and cause the company to lose market share,” Wu said in a report released on Friday.

In addition, Wu said he was worried about the company’s insufficient capacity as demand for Samsung’s Galaxy S4 and Note 3 smartphones remains vigorous, warning that Largan may not be able to meet all of its clients’ demand, after the company sought new clients other than Apple.

CATCHER TECHNOLOGY

Separately, Catcher Technology Co (可成科技), which makes metal casings for the MacBook Air and iPad Mini, yesterday reported sales last month increased 19.5 percent month-on-month and 49.1 percent year-on-year to NT$4.55 billion.

Largan’s shares closed up 1.11 percent at NT$1,005 yesterday, while Catcher’s shares closed down 1.11 percent at NT$178.5.

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