Metal casing supplier Catcher Technology Co (可成科技) yesterday defended its operational outlook amid market concerns regarding Apple Inc’s adoption of glass panels on both sides of its new iPhones, saying that it is still a major casing supplier to the US electronics giant.
“We are the client’s main casing supplier. The order allocation for Catcher will only go up, not down,” Catcher spokesman James Wu (巫俊毅) said in an interview with Unique Satellite TV.
The Tainan-based company has rarely spoken to local media regarding its operations, except at its regular earnings conferences.
However, concerns built up in the days before the launch of new iPhones on Tuesday as investors speculated that Catcher would not gain orders for the iPhone X — Apple’s most expensive model — and the iPhone 8 and iPhone 8 Plus as Apple moves away from full-metal casings to two-sided glass casings.
Hon Hai Precision Industry Co’s (鴻海精密) metal-casing arm, Foxconn Technology Co (鴻準) — Catcher’s largest rival — is speculated to have secured 100 percent of the orders for iPhone X cases.
Shares of Catcher had plunged for 10 consecutive trading sessions prior to yesterday, closing at NT$325.5 on Thursday, well below its quarterly average of NT$370.14, Taiwan Stock Exchange data showed.
Shares increased 1.69 percent to NT$331 after Wu’s remarks.
In the interview, Wu said it is “groundless” to say Apple would completely replace metal with glass, as there is no possibility that a full-glass casing could support a handset.
On the contrary, a unibody metal frame, which requires a more difficult manufacturing process, is highly relied upon to support the structure of the product when using glass for the front and the back, Wu said.
The average selling price of Catcher’s metal casings this year is estimated to be flat or slightly higher than last year’s, Wu said, dismissing market speculation about falling prices for metal casings.
However, he declined to confirm whether Catcher has received iPhone X orders.
Wu said that the firm did participate in the supply of “some” models for Apple this year, although he did not specify whether the orders were for the iPhone 8, iPhone 8 Plus or iPhone X.
He said Catcher’s orders and total shipments this year are projected to increase from last year, but he did not elaborate or provide shipment breakdowns for the iPhone models.
In a positive sign for the company, Catcher reported revenue of NT$8.52 billion (US$283.3 million) for last month, the highest monthly figure in the company’s history.
The firm’s revenue is forecast to grow month-by-month for the remainder of the year, Wu said.
Cumulative revenue from January to last month rose 3.56 percent annually to NT$49.05 billion, a company filing with the Taiwan Stock Exchange showed.
Cumulative capital expenditure in the first three quarters was NT$7.5 billion, with the money spent on production expansion, which Wu said demonstrated Catcher’s optimism on its business outlook for the longer term.
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