Cheng Uei and Quanta in high spirits for today’s Apple Watch preorder
Cheng Uei Precision Industry Co. ( ) and Quanta Computer Inc. ( ), suppliers of the Apple Watch, have reason to smile as stocks are soaring in anticipation of the Apple Watch’s preorder set to begin today.
Terry Gou ( ), chairman and president of Foxlink Group ( ), said yesterday that he feels optimistic about this year’s business. The company has been investing in recent technology trends, such as wearable devices and Type C USBs this year.
Cheng Uei hit an intraday high with its 4.17 percent gain and shares priced at NT$62.5, which is nearly a year-on-year high. Cheng Uei had also invested NT$900 million in Central Pictures Corporation ( ) and acquired 13.6 percent of Central Picture’s equity, land rental income, asset revaluation and investment in the cultural and cre- ative industry, resulting a steady rise for Cheng Uei’s shares.
Quanta Computer, the principal Apple Watch manufacturer, saw its shares rise by 1.9 percent, resulting from the market’s anticipation of the Apple Watch’s preorder and shipping status.
While Quanta was reported last month to have experienced assembly yield and manpower problems in the face of the new product’s release, experts said that Quanta’s Apple Watch manufacturing yields
had risen from 50 to 60 percent.
Chicony Revived by Wearable
Chicony ( ) announced yesterday before the markets opened that March’s consolidated revenue was at NT$6.44 billion, a 31.5-percent rise within the month, and an annual growth of 1.02 percent. First-quarter results are also glowing at NT$18.005 billion and meeting a new high compared to the same period last year.
Last year’s fourth-quarter con- solidated revenue saw a 34-percent rise, and a 23-percent rise from 2013 due to the rise of the Internet of Things (IoT, ) industry.
This year’s IoT-related products include wearable devices, cloud computing and LEDs, all giving the necessary push for Chicony’s revenue, which could see a 3-percent rise.
Markets expect Chicony’s second-quarter revenue to see doubledigit increases, likely hitting a record high for the year, besting last year’s NT$80.11 billion.