‘PROFIT BOOST FOR LOCAL CHIPMAKERS’
Inari Amerton and Globetronics likely to enjoy from Apple’s expected rising sales
THE latest iPhones, which were launched last week, are expected to boost the earnings of local semiconductor companies like Inari Amertron Bhd and Globetronics Technology Bhd, say analysts.
Apple’s expected high sales volume could potentially drive Malaysian firms’ production volume higher, said the analysts, who gave an “outperform” rating on the semiconductor sector.
Apple recently launched three new iPhone models — the iPhone Xs and Xs Max, and the lower spec iPhone Xr.
Macquarie Equities Research said it viewed the launch as positive and expected Malaysia’s semiconductor companies to benefit from the new iPhones.
“The sales volume will be key, as it will determine if there is a ramp-up in production volume above base demand,” said the research firm in a statement.
Macquarie said total number of LTE (long-term evolution) bands supported in the iPhone XR/XS had risen to 26 and 27.
Additional bands should translate to additional filter content, as well as more complex carrier aggregation (band combinations) at Inari, it added.
The iPhones XS/XS Max have added support for 4x4 MIMO (multiple input, multiple output) gigabit LTE, as well as LAA (licensed assisted access).
Macquirie said the LAA introduction could involve antennaplexing (allowing WiFi and cellular radios to share antennae), and could boost demand for film bulk acoustic resonance (FBAR)content.
Globetronics, which reportedly may get lower Apple’s parts orders for iPhone models this year compared with last year, is also likely to post stronger earnings in the second half of the year than the first half, with other smartphone launches.
Maybank Research in its report said it expected a better second half for Globetronics on an anticipated surge in demand at the sensors business segment to prepare for the smartphone launches in the third quarter of this year.
“We make upward adjustments in our proximity and wearable sensor volumes to incorporate strong first-half volume shipments.
“We have also raised our gesture sensor volumes, incorporating capacity expansion undertaken by Globetronics as required by ams AG, its key sensor client,” it said.
The Austrian firm, formerly known as austriamicrosystems AG, designs and manufactures advanced sensor solutions for applications requiring small form factor, low power, highest sensitivity and multi-sensor integration.