Tue, Jan 14, 2020 - Page 12 News List

FIH Mobile to profit from iPhone launches: analyst

By Natasha Li  /  Staff reporter

FIH Mobile Ltd (富智康), a handset manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), stands to benefit from Apple Inc’s launch of up to five new iPhone models this year, TF International Securities Group Co (天風國際證券) analyst Kuo Ming-chi (郭明錤) said in a report yesterday.

The Hong Kong-listed FIH is to profit from its US client’s growing non-recurring engineering (NRE) costs, as Apple is expected to release a 4.7-inch LCD iPhone in the first half of the year, followed in the second half of the year by four OLED iPhones ranging from 5.4 inches to 6.7 inches and housing double or triple-lens rear cameras, Kuo said.

Kuo earlier said that the 4.7-inch LCD smartphone was likely to succeed the iPhone SE, Apple’s budget smartphone launched almost four years ago.

The new device is rumored to resemble the iPhone 8.

As Apple is continuing to develop sub-6 gigahertz smartphones with and without millimeter-wave support, the four OLED models, which feature 5G connectivity, are expected to ship by the end of the third quarter or the beginning of the fourth quarter, the report said.

Due to the relatively high difficulty in developing the 5G iPhones compared with previous iPhones, Apple is expected to increase NRE costs, which would benefit FIH, the report said.

The report also pointed to growing demand for Android smartphones, which would further bolster FIH’s shipments this year.

As Huawei Technologies Co (華為) cut ties with its former US supplier Flextronics International Ltd last year, FIH and BYD Electronic Co (比亞迪) are expected to benefit from transferred orders, the report said.

As a result, FIH shipments to Huawei are expected to increase 15 to 20 percent year-on-year to 50 million units this year, it said.

FIH shipments to Xiaomi Corp (小米) are also expected to increase 25 to 30 percent to 45 million units on the back of strong demand for Redmi Note smartphones, the report said, adding that Xiaomi has expanded its market presence significantly in developing markets as well as Europe.

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