Hon Hai Precision Industry Co (鴻海精密) and Pegatron Corp (和碩) have received large orders from Apple Inc to assemble the next-generation iPhone, KGI Securities Co (凱基證券) said.
In a research report issued on Friday, KGI analyst Kuo Ming-chi (郭明錤) said Hon Hai is expected to become the sole assembler of the next 5.5-inch iPhone model.
Hon Hai could also get 60 percent of the orders for the next 4.7-inch iPhone model, while Pegatron is likely to secure the remaining 40 percent of the orders, said Kuo, who is considered to have a good record tracking Apple and its supply chain.
The market is expecting the new iPhone models to serve as major drivers of sales growth for Hon Hai and Pegatron in the second half of the year and help them shake off the slow season effects in the first half.
Media in China have cited industry sources as saying that a Hon Hai production base in Zhengzhou, Henan Province, has received large orders from Apple to assemble the new iPhone and is launching a massive recruitment drive to meet growing demand from the client.
Kuo said the new iPhone models might enter mass production later this month, adding that the new gadget is to be equipped with the firm’s latest touch technology, Force Touch, which allows users to make alternate inputs by pressing firmly on the screen.
While other analysts have suggested that the new iPhone will underperform its predecessors because of an apparent slowdown in the global smartphone market, Kuo said that the new gadgets will be as popular as previous models due to specification upgrades.
He also forecast shipments of the firms in Apple’s supply chain to remain strong in the third quarter.
The market expects Apple to unveil the new iPhone models in the middle of next month.
Hon Hai shares ended unchanged at NT$88.5 and Pegatron shares closed up 3.23 percent at NT$83.1 in Taipei trading on Friday.
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