Inari’s earnings to be supported by new iPhone
KUCHING: The earnings of local electronic manufacturing services (EMS) player Inari Amertron Bhd (Inari) is anticipated to be supported by Apple Inc’s (Apple) brand new iPhone X, 8 and 8 plus models.
In a company report, AmInvestment Bank Bhd (AmInvestment Bank) believed the main upgrades featured in the new iPhone models, especially its wireless charging feature, would bode well for their earnings growth forecast of 35 per cent for in financial year 2018 (FY18).
To recap, all three new models have been revealed to feature wireless charging features, a higher performance A11 bionic chipset, upgraded cameras and true tone display.
The iPhone X which is a special premium 10 year anniversary edition also touts a 5.8 OLED bezel-less display, true depth camera with 3D depth sensing capability which enhances augmented reality applications, and a Face ID feature which takes a 3D scan of users face to unlock the smartphone or authorise other actions.
Recently, Broadcom registered sturdy wireless revenue growth of 27 per cent year over year (y-o-y) and 12 per cent quarter over quarter (q-o-q) in the third quarter of FY17 (3QFY17). AmInvestment Bank
As to how exactly the new iPhone models would positively impact Inari’s earnings moving forward, the research team said the company would benefit from its link with Broadcom Ltd (Broadcom) which is also connected to Apple.
It noted, the remarkable sales leap was driven by the start of a ramp from its North American smartphone customer (Customer A) ahead of their impending flagship product launches.
“Recently, Broadcom registered sturdy wireless revenue growth of 27 per cent year over year (y-o-y) and 12 per cent quarter over quarter (q-o-q) in the third quarter of FY17 (3QFY17).”
It added, “In addition, the growth was further boosted by a significant increase in RF cellular and WiFi connectivity contents in Customer A’s new products due to rising adoption of newer-generation telecommunication technologies – from 2G to 3G, from 3G to 4G,” said the bank.
In addition, AmInvestment Bank also reported that Tan has guided that the rev-up of the new products from Customer A has already gone in full stride and expects wireless revenue for the upcoming quarter (4QFY17) to record a staggering growth q-o-q and y-o-y.
“On his outlook for 1QFY18 wireless revenue, unlike prior years, which would typically see q-o-q slowdown, he foresees revenue to hold up sequentially due to the expected pent-up demand for the new ‘anniversary’ flagship product,” added the bank.