Hon Hai and Pe­ga­tron se­cure or­ders for new iPhone: mar­ket an­a­lyst

The China Post - - LOCAL -

Tai­wan-based Hon Hai Pre­ci­sion In­dus­try Co. and Pe­ga­tron Corp. have re­ceived large or­ders from Ap­ple Inc. to as­sem­ble the next gen­er­a­tion of iPhones, ac­cord­ing to a mar­ket an­a­lyst.

Kuo Ming- chi, an an­a­lyst with Taipei-based KGI Se­cu­ri­ties, said in a re­search re­port that Hon Hai, the world’s largest con­tract elec­tron­ics maker, is ex­pected to be­come the sole as­sem­bler of the next 5.5-inch iPhone model.

It could also get 60 per­cent of the or­ders for the next 4.7-inch iPhone model, while Pe­ga­tron, a notebook com­puter con­trac­tor that has pen­e­trated the Ap­ple sup­ply chain, is likely to se­cure the re­main­ing 40 per­cent of the or­ders, Kuo said.

Kuo is con­sid­ered to have a good record in track­ing Ap­ple and its sup­ply chain.

The mar­ket is ex­pect­ing the new iPhone mod­els to serve as ma­jor driv­ers of sales growth for Hon Hai and Pe­ga­tron in the sec­ond half of the year and help them shake off the slow sea­son ef­fects of the first half.

News media in China have cited in­dus­try sources as say­ing that a Hon Hai pro­duc­tion base in Zhengzhou in He­nan prov- ince, China, has re­ceived large or­ders from Ap­ple to as­sem­ble the new iPhone and is launch­ing a mas­sive re­cruit­ing drive to meet grow­ing de­mand from the client.

Kuo said he ex­pected the new iPhone mod­els to en­ter mass pro­duc­tion in late Au­gust.

He added that the new gad­get will be equipped with the latest touch tech­nol­ogy, Force Touch, which al­lows users to change some set­tings by press­ing firmly on the screen.

While other an­a­lysts have sug­gested that the new iPhone will un­der­per­form its pre­de­ces­sors be­cause of an ap­par­ent slow­down in the global smart­phone mar­ket, Kuo be­lieved that the new gad­gets will be as pop­u­lar as pre­vi­ous mod­els due to spec­i­fi­ca­tion up­grades.

The an­a­lyst said he ex­pected ship­ments of the firms in Ap­ple’s sup­ply chain to re­main strong in the third quar­ter.

The mar­ket ex­pects Ap­ple to un­veil the new iPhone mod­els in mid-Septem­ber.

On Fri­day, shares of Hon Hai ended un­changed at NT$88.50 (US$2.79) on the Tai­wan stock ex­change, while shares of Pe­ga­tron closed up 3.23 per­cent at NT$83.10.

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