Pegatron Corp (和碩), which assembles Apple Inc’s iPhone models, yesterday reported a nearly 27 percent monthly fall in revenue to NT$121.83 billion (US$4.06 billion) last month from the previous month’s NT$166.47 billion, as the peak season waned and smartphone shipments declined.
On an annual basis, the NT$121.83 billion represented a 3.19 percent contraction from last year’s NT$125.84 billion, a company filing with the Taiwan Stock Exchange showed.
“The monthly decline was due to the seasonal effect, which is in line with Pegatron’s estimate and matches the company’s historic pattern,” a Pegatron investor relations official said by telephone.
The official said Pegatron remained optimistic that overall performance this quarter would outpace last quarter’s results on rising demand for communications products and notebook computers.
Notebook shipments are expected to expand by between 15 and 20 percent this quarter from last quarter, and motherboard and desktop computer shipments are expected to drop less than the company’s previous estimate, she said.
Pegatron on Nov. 11 forecast that motherboard and desktop computer shipments would drop by 25 percent at most this quarter, but given stronger-than-expected orders from clients last month, the firm now foresees the pace of the decline slowing, the official said.
The official said that involving delays of key components and rising labor costs, which significantly dragged Pegatron’s earnings down during the July-to-September quarter, are no longer a problem, because communications product shipments have peaked.
The iPhone assembler’s net profit surprisingly shrank 32.4 percent annually to NT$3.63 billion last quarter, dragged down by a disruption in component supply that left employees idle as the company was about to ramp up production of a new communications product.
In related news, Wistron Corp (緯創), which is widely believed to have shared orders for the 5.5-inch iPhone with Hon Hai Precision Industry Co (鴻海精密), on Friday last week reported a mild monthly contraction of 0.73 percent in revenue to NT$89.12 billion last month.
Wistron’s sales performance translated into a 27.73 percent annual expansion from the NT74.12 billion recorded in the same period last year, a company filing with the Taiwan Stock Exchange showed.
Pegatron is believed to assemble 4.7-inch iPhones, including previous generations of the 4.7-inch iPhone and the latest 4.7-inch iPhone 8, while Hon Hai — Pegatron’s largest rival and the assembler of all iPhone X orders — assembles a majority of the 5.5-inch iPhones and some 4.7-inch iPhones, industry sources said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
STAYING AHEAD: TSMC expects its sales this year to grow 14 to 19 percent and could spend up to US$3.52 billion on research and development, leaving its rivals far behind Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported that the US last year approved 99 percent of its patent applications, which placed the tech giant among the top patent holders in the US. In its Corporate Social Responsibility Report, TSMC said it last year secured about 3,600 patents worldwide, including more than 2,300 in the US. As of the end of last year, TSMC owned more than 39,000 patents, the report said. The company last year filed almost 6,500 patent applications worldwide and ranked among the top 10 patent applicants in the US. In Taiwan, it was the largest patent applicant for the fourth