Apple Inc is expected to introduce new high-end headphones in the fourth quarter of this year in a bid to broaden its audio accessory product lineup, following the successful launches of its AirPod wireless earphones and HomePod speakers, KGI Securities Co (凱基證券) analyst Kuo Ming-chi (郭明錤) said.
The new headphones are expected to offer the same level of convenience as AirPods, but with better acoustic quality, which is expected to benefit two Taiwanese supply-chain firms, Primax Electronics Ltd (致伸) and Shin Zu Shing Co Ltd (新日興), Kuo said in a research note on Friday.
Primax might be able to obtain new orders from Apple due to its familiarity with the audio business, while Shin Zu Shing has an advantage in metal injection molding (MIM) technology and is likely to become a sole supplier of MIM components for the Cupertino, California-based company, he added.
MIM is a combined technology of powder metallurgy and plastics injection molding. It has been increasingly applied by hinge makers like Shin Zu Shing to overcome restrictions inherent to conventional powder metal, machining and die casting.
Kuo said he expects the new headphones to have a higher price tag than AirPods, which would boost Primax’s sales this year.
Primax on Tuesday last week reported earnings per share of NT$4.67 for last year, higher than the previous year’s NT$4.4, on net profit of NT$2.06 billion (US$70.3 million) and revenue of NT$60.74 billion.
As the new headphones would need dozens of MIM components, they are expected to make a significant contribution to Shin Zu Shing’s business this year, Kuo said.
Shin Zu Shing’s revenue last year rose 6.8 percent annually to NT$8.66 billion, while net profit in the first three quarters of last year fell 1.32 percent to NT$602.85 million, or earnings of NT$3.37 per share, company data showed.
Kuo late last year said that Apple was likely to launch an upgraded version of AirPods in the second half of this year.
On Friday’s note he said that the second-generation AirPods would include a new wireless charging case with a higher heat dissipation requirement, which would demand higher-quality hinges.
While Shin Zu Shing entered the AirPods’ hinge supply chain only earlier this year with a lower order allocation than the US-based supplier Amphenol Corp, the Taiwanese firm might become a major hinge supplier for the new AirPods, or even a sole supplier, given its better execution capability, Kuo said.
Kuo reiterated his prediction that AirPod shipments could reach 26 million to 28 million units this year, with major assemblers including Taiwan’s Inventec Corp (英業達) and China’s Luxshare Precision Industry Co (立訊).
GoreTek Inc (歌爾), another Chinese acoustic components maker, could become the third assembler beginning in the fourth quarter, as Apple aims to meet higher market demand while reducing costs, he said.
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