Handset camera lens manufacturer Largan Precision Co (大立光) yesterday posted a 23.01 percent year-on-year drop in sales for last month, marking the company’s second consecutive month of annual declines.
In line with the company’s expectation of a gradual monthly decline this quarter, Largan’s sales slipped 17.31 percent to NT$3.87 billion (US$129.7 million) last month from NT$4.68 billion in April amid strong market uncertainty fostered by the COVID-19 pandemic.
This bucks what is typically a seasonal uptrend, as monthly sales usually increase from March onward as companies move to restock inventories ahead of new product launches in the third quarter.
Apple Inc, one of Largan’s largest clients, is reportedly delaying the launch of its iPhone 12 series planned for September.
Quoting Broadcom Inc chief executive officer Hock Tan (陳福陽), Bloomberg News yesterday reported that Apple’s new lineup is likely to be announced in the fourth quarter due to supply and travel constraints caused by the pandemic.
In an attempt to help Apple maintain its schedule, Largan is rumored to have granted Apple the use of one of its patents to help solve a design hiccup over the iPhone 12’s wide-angle lens.
Largan yesterday confirmed that it has authorized the use of its patents by other parties without specifying who.
However, Apple’s potential product delay is not the only factor that might affect Largan’s sales next quarter.
With a fresh wave of US sanctions against Huawei Technologies Co (華為) looming, analysts have said that its Taiwan-based suppliers, including Largan, might see their sales severely affected.
Largan’s shares yesterday closed at NT$4,270 in Taipei trading, up 0.71 percent.
In other news, Hon Hai Precision Industry Co (鴻海), a major assembler of iPhones, yesterday posted record revenue of NT$386.98 billion for last month, an increase of 0.72 percent year-on-year, thanks to healthy sales of Apple’s updated budget iPhone SE series.
A sales breakdown showed that Hon Hai’s consumer electronics segment was the largest contributor to last month’s figure, followed by sales of computer terminals, components and cloud-based products.
In the first five months of this year, the company reported that cumulative revenue declined 6.74 percent to NT$1.69 trillion.
Citing dampening market demand for smartphones, Hon Hai had earlier forecast a single-digit percentage annual decline in overall sales for this quarter.
Global smartphone shipments are expected to fall nearly 12 percent to 1.2 billion units by the end of the year, market research firm International Data Corp said.
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