Pegatron Corp (和碩), an assembler of Apple Inc’s iPhone and iPad, is likely to see orders from the US technology giant account for a higher share of its revenue this year because of the expected launch of new Apple products, a Japanese brokerage said yesterday.
Nomura Holdings Inc raised its rating on Pegatron shares from “neutral” to “buy” with a target price of NT$53, citing an expected increase in the company’s margins and strong growth in its Apple business.
“We expect Pegatron to begin manufacturing Apple’s new iPhone model in June or July and Pegatron should continue to be a major producer of the next generation of the iPad mini in 2013,” Nomura analyst Eve Jung (戎宜蘋) wrote in a research report.
She estimated that Pegatron would supply 60 percent and 24 percent of Apple’s iPad minis and iPhones respectively this year.
As a result, Apple could account for about half of Pegatron’s revenue this year, up from 35 percent last year, Jung said.
Pegatron shares gained 3.41 percent to close at NT$40.90 yesterday in Taipei trading. The shares have risen 2.38 percent over the past 12 months.
The Chinese-language Commercial Times newspaper reported yesterday that Pegatron is set begin pilot production for a low-cost version of the iPhone in May, before Apple’s new products hit the market in the third quarter.
Pegatron is forecast to ship about 40 million units of the planned low-cost iPhone, which could sell for as little as US$350 by being cased in plastic, the report said.
CHIP HANG-UP: Surging memorychip prices would deal a blow to smartphone sales this year, potentially hindering one of MediaTek’s biggest sources of revenue MediaTek Inc (聯發科), the world’s biggest smartphone chip designer, yesterday said its new artificial intelligence (AI) chips used in data centers are to account for 20 percent of its total revenue next year, as cloud service providers race to deploy AI infrastructure to meet voracious demand. MediaTek is believed to be developing tensor processing units for Google, which are used in AI applications. While it did not confirm such reports, MediaTek said its new application-specific IC (ASIC) business would be a new growth engine for the company. It again hiked its forecast for the addressable ASIC market to US$70 billion by 2028, compared
MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it plans to double investment in data center-related technologies, including advanced packaging and high-speed interconnect technologies, to broaden the new business’ customer and service portfolios. The chip designer is redirecting its resources to data centers, mainly designing application-specific integrated circuits (ASIC) with artificial intelligence (AI) capabilities for cloud service providers. The data center business is forecast to lead growth in the next three years and become the company’s second-biggest revenue source, replacing chips used in smart devices, MediaTek president Joe Chen (陳冠州) told a media event in Taipei. “Three or four years
Motorists ride past a mural along a street in Varanasi, India, yesterday.
Until US President Donald Trump’s return a year ago, when the EU talked about cutting economic dependency on foreign powers — it was understood to mean China, but now Brussels has US tech in its sights. As Trump ramps up his threats — from strong-arming Europe on trade to pushing to seize Greenland — concern has grown that the unpredictable leader could, should he so wish, plunge the bloc into digital darkness. Since Trump’s Greenland climbdown, top officials have stepped up warnings that the EU is dangerously exposed to geopolitical shocks and must work toward strategic independence — in defense, energy and
RSS