Pegatron Corp (和碩) on Saturday said that it might face slow seasonal demand in the first half of this year, but expects peak demand to come in the second half to boost it toward another record year.
“It seems there would not be some good news in the first half of the year while everyone [in the industry] is taking a rest and preparing for the second half,” chief executive officer Jason Cheng (程建中) told a media briefing ahead of the company’s annual weiya (year-end banquet, 尾牙) for its employees at the Nangang Exhibition Hall in Taipei.
“The [demand for] the first half of this year is very low,” Cheng said, adding that it is not clear if sales in the first half will be lower than the NT$492.61 billion (US$14.64 million) made in the first half of last year.
Pegatron is in a process of building new overseas manufacturing plants to keep up with clients’ requests, Cheng said, although he declined to disclose the location of the plants.
Every year has different challenges, but Pegatron still manages to overcome each of them, he said.
“We aim to maintain strong growth momentum and achieve another highest-ever revenue this year following two consecutive years of record sales,” Cheng said.
Pegatron reported revenue of NT$1.21 trillion for last year, a 19.01 percent increase from the NT$1.01 trillion made in 2014, according to the company’s filing with the Taiwan Stock Exchange.
Pegatron is investing in Internet of Things applications and automation, such as automotive electronics, with an eye on long-term development, Cheng said.
“We would not see meaningful contribution from those investments right away, but they will have a significant positive effect on Pegatron’s development in the long run,” Cheng said.
Chairman Tung Tzu-hsien (童子賢) said he is still upbeat about the smartphone industry, even though some major global companies “might have tumbled a bit” as the industry has grown increasingly saturated.
“The global economy and performances of some major clients certainly will have deep impacts on us. However, the situation is not as bad as people thought,” Tung said.
Some companies in the sector have the resilience and ability to adjust to changing markets and economic conditions, the chairman said.
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