Thu, Dec 19, 2013 - Page 14 News List

Deutsche Bank says Hon Hai to be only iPhone assembler

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海精密) is to be the sole assembler of Apple Inc’s next iPhone model, likely helping its total iPhone shipments grow by 13 percent next year, according to Deutsche Bank AG.

“We believe Hon Hai will be the sole assembly supplier for the new model given its sufficient manpower and flexible capacity for mass production,” Andrew Chang, a Taipei-based analyst at Deutsche Bank, wrote in a note to investors on Tuesday.

Exclusive production of the new iPhone, expected to have a 4.8-inch display and to be launched in the third quarter of next year, is likely to help Hon Hai increase its total iPhone shipments, including of the iPhone 5S and 5C, by 13 percent next year to 140 million units despite Apple’s multiple-supplier strategy, the bank said.

Hon Hai received 79 percent of Apple’s iPhone orders this year, with the remaining 21 percent allocated to rival Pegatron Corp (和碩), according to the bank’s estimates.

However, Hon Hai’s share of the iPhone business is likely to fall to 74 percent next year, compared with a 23 percent share for Pegatron and the remaining 3 percent share for a new entrant, Wistron Corp (緯創), the bank said.

Hon Hai’s current 69 percent share of iPad assembly orders is expected to drop to 63 percent next year as another new entrant, Compal Electronics Inc (仁寶), gets a 7 percent share, according to the bank.

Pegatron’s 31 percent share of the iPad orders is likely to hold at about 30 percent next year, the bank said.

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