Mon, Dec 09, 2013 - Page 13 News List

Battery pack maker Simplo posts record high sales

By Helen Ku  /  Staff reporter

Supported by robust sales of Apple Inc’s new iPhone and iPad products, battery pack maker Simplo Technology Co (新普) on Thursday reported that sales rose to a record high of NT$6.01 billion (US$203 million) last month.

The figure reflects a 9.83 percent growth from NT$5.47 billion in the previous month and a 3.69 percent increase from NT$5.79 billion a year ago, according to the company’s filing to the Taiwan Stock Exchange.

However, due to decreased shipments of batteries used in laptops, Simplo reported that cumulative sales dropped 8.37 percent to NT$49 billion during the first eleven months of the year, from NT$53.48 billion during the same period last year.

“As a member of Apple’s supply chain, Simplo could achieve growth in sales or shipments by filling orders for Apple’s new products, but there is no guarantee that profits can be boosted at the same time,” Hua Nan Securities Co (華南永昌投顧) chairman David Chu (儲祥生) said by telephone.

Unlike handset camera lens maker Largan Precision Co (大立光), Simplo can supply battery packs for Apple’s iPad and iPhone products, “but not high-margin value-added components that require advanced technologies,” Chu said.

“A battery is not the same as a camera lens, which can be upgraded to capture more pixels and light to provide better image quality,” Chu said.

“To sustain sales growth, Simplo has to look to Largan and come up with exclusive technologies that make the company dominant in the market, or it could lose orders to rivals soon,” he added.

Simplo’s major domestic rivals include Dynapack International Technology Corp (順達) and Celxpert Energy Corp (加百裕).

With suitable technologies in hand, China-based battery pack makers Desay Battery Co Ltd (德賽) and Sunwod Electronics Co Ltd (欣旺達) have also been selected by Apple as battery suppliers from this year, Chu said.

For this month, Chu forecast Simplo would post a single-digit decline in sales, citing past figures showing demand for Apple’s new iPhone and iPad products usually stayed vigorous for no more than two months after they hit the market.

In a separate filing, Dynapack, one of Apple’s main battery pack suppliers, on Thursday reported that its sales expanded by 48.51 percent to a record-high NT$3.3 billion last month from NT$2.22 billion a month ago.

On an annual basis, Dynapack’s sales last month represent a 25.48 percent increase from the NT$2.63 billion posted in the same period last year, according to data collected by the Taiwan Stock Exchange.

Cumulative sales during the January-to-November period amounted to NT$22.92 billion, down 11.46 percent from NT$25.88 billion during the same period last year, the filing showed.

Meanwhile, Celxpert, which supplies battery packs to brands including Lenovo Group (聯想) and Samsung Electronics Co, on Thursday reported that its sales grew 5.84 percent to NT$339.21 million last month from NT$320.49 million in October.

However, on an annual basis, Celxpert’s sales last month reflect a 25.02 percent contraction from NT$452.38 million a year ago.

Cumulative sales during the first 11 months of the year dropped 17.63 percent to NT$4.22 billion from NT$5.13 billion a year ago, the company said in its filing to the stock exchange.

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