Tue, Aug 18, 2015 - Page 14 News List

Compal poised to outshine Wistron in Apple supply

SALES FORECAST:Compal’s sales from the iPad are set to grow 161 percent this year, while Wistron’s sales from the iPhone are set to increase by 119 percent

CNA, with staff writer

Taiwan-based Compal Electronics Inc (仁寶) is more likely than rival Wistron Corp (緯創) to generate earnings growth through participation in Apple Inc’s supply chain, according to a research note issued by a foreign brokerage yesterday.

Compal and Wistron became assemblers for Apple at the same time in 2014, with Compal manufacturing iPads and Wistron producing iPhones.

“Currently, we believe Compal has a better chance of securing orders and scaling iPad orders to profit than Wistron with iPhone,” the European brokerage said in a note to clients yesterday.

The brokerage, whose name cannot be disclosed because it was offering specific forecasts that could influence the market, said Compal’s sales from the iPad would grow 161 percent this year and 74 percent next year, while Wistron’s sales from the iPhone would increase 119 percent this year and 80 percent next year.

The brokerage’s analysis coincided with the change in the stakes in Compal and Wistron held by qualified foreign institutional investors since the two companies were added to the Apple supply chain.

The foreign investors held 49 percent stakes in both Compal and Wistron at the end of 2014, but they now hold a 54 percent stake in Compal and only a 29 percent stake in Wistron.

Compal shares remained unchanged yesterday at NT$18.50, while Wistron shares ended down 2.8 percent at NT$13.90.

This story has been viewed 2350 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top