Pegatron posts best January revenue

INVENTORY-BUILDING::About 30 percent of the company’s production capacity was devoted to producing earlier-generation devices, which are believed to be iPhones

By Lauly Li  /  Staff reporter

Tue, Feb 13, 2018 - Page 12

Pegatron Corp (和碩), the second-largest assembler of Apple Inc’s iPhones, has reported revenue of NT$121.06 billion (US$4.1 billion) for last month, the highest January figure in the company’s history, driven by robust demand for the iPhone 8 and earlier iPhone models.

The figure represents 35.8 percent growth from NT$89.14 billion a year earlier.

On a monthly basis, revenue grew 36 percent from December last year’s NT$89.01 billion, the company’s filing with the Taiwan Stock Exchange showed.

“The strong revenue performance was fueled by Pegatron’s communications client’s inventory-building demand ahead of the Lunar New Year holiday,” a Pegatron investor relations official said by telephone yesterday.

Pegatron does not disclose the details of its communications segment, on grounds that it contains sensitive information about its clients.

However, it is widely known that the segment includes the assembly of iPhones.

Pegatron reportedly secured a majority of the orders for the 4.7-inch iPhone 8 and earlier 4.7-inch iPhone models.

Hon Hai Precision Industry Co (鴻海精密) is the sole assembler of the iPhone X. It also assembles a majority of the 5.5-inch iPhone 8 Plus and earlier 5.5-inch iPhones.

Wistron Corp (緯創) shares part of the orders for the 5.5-inch iPhones with Hon Hai, market analysts have said.

Pegatron’s consumer electronics segment, including game consoles, and its computing segment suffered a monthly decline due to the traditional low season, the official said.

However, the robust momentum of the 4.7-inch iPhones stood out, they said.

“Both new and old-generation communications products were shipped last month,” the official said.

Pegatron chairman Tung Tzu-hsien (童子賢) in December last year said that the company had received robust orders for earlier-generation communications products.

“About 30 percent of Pegatron’s production capacity was devoted to making previous models during the October-to-December quarter,” Tung told reporters, without naming the product or the client.

Pegatron expects shipments to contract across the board this month from last month, due to fewer working days because of the Lunar New Year holiday.

Pegatron has yet to file its earnings result for last quarter.

It is to hold an investors’ conference in the middle of next month to provide operational guidance for this quarter and beyond.

Its accumulated net profit in the first three quarters of last year fell 18.7 percent annually to NT$10.95 billion, or NT$4.24 per share, according to the firm’s filing with the stock exchange.

Pegatron shares yesterday fell 1.5 percent to NT$72.3 in Taipei trading, underperforming the TAIEX, which rose 0.48 percent.