Consolidated sales posted by Largan Precision Co (大立光), a smartphone camera lens supplier to Apple Inc, last month hit a new high for this year, with analysts attributing the growth to an increase in orders from the US consumer electronics giant for production of its two latest iPhones.
In a statement released on Saturday, Largan said it recorded NT$2.65 billion (US$89.83 million) in consolidated sales for last month, up 10 percent from a month earlier and also up 48 percent from a year earlier.
Analysts said the sales growth showed that Apple was placing large orders with Largan for camera lenses to be used in its iPhone 5S and the lower cost iPhone 5C.
Apple unveiled the two new models on Sept. 10.
The first weekend after the iPhone 5S and iPhone 5C went on sale on Sept. 20 the sales volume surpassed 9 million units, the highest first weekend sales for Apple’s iPhones. It beat an earlier market estimate of between 6 million and 8 million units.
The popularity of the new iPhones is expected to boost Largan’s sales. Largan has been dubbed one of the “Apple concept stocks” on the Taiwan Stock Exchange.
In the third quarter, Largan posted NT$7.16 billion in consolidated sales, up 22 percent from the second quarter and also up 59 percent from a year earlier. In the first nine months of this year, Largan’s revenue rose 58 percent from a year earlier to NT$18.13 billion.
Largan said the third quarter sales growth was in line with the company’s earlier expectations, adding that it remained confident that demand from its clients will stay solid this month. It said it was also upbeat about the market conditions for the rest of this year.
In addition to Apple, Largan has secured orders from smartphone vendors from China and South Korea, analysts said.
Largan said the company is trying its best to boost its yield rate, which has been improving from month to month. It is scheduled to hold an investor conference later this month to release its results for the third quarter and give guidance for the fourth quarter.
In a research note, Morgan Stanley said large orders from Apple for production of the two new iPhones to its local suppliers are expected to continue into the fourth quarter, which will further boost sales for Apple suppliers, including Largan.
On Friday, shares of Largan rose 0.98 percent to close at NT$1,030 on the main board, the highest level since Sept. 5, when the stock ended at NT$1,050.