Stellar iPhone 6 sales to buoy Largan prospects

By Ted Chen ,The China Post

TAIPEI, Taiwan — Institutional investors yesterday announced that prospects for the smartphone camera supplier Largan Co. (�j�ߥ�) are expected to be buoyed by the markets’ exuberant reception of Apple’s newly launched iPhone 6 handsets, with performance anticipated to continue improving until the end of this year.

In particular, institutional investors emphasized that the pricier and larger 5.5-inch iPhone 6 Plus variant has seen better-than-expected sales. From January to April this year, Largan has garnered record-breaking revenues, with company CEO Adam Lin (�L����) anticipating performance to continue to soar throughout October and November during an earnings conference last week.

Institutional investors noted that the tremendous demand for the new Apple handsets have led to severe shortages at major markets worldwide, and Largan is well-positioned to benefit from the U.S. giant’s decision to hike up projected shipping volume targets for the coveted smartphone. Improvements in performance results derived from iPhone-related sales are expected to persist until the end of this year and will likely boost earnings in the first quarter of next year as the Taiwan-based camera supplier’s efforts to expand production capacity take effect.

As iPhone 6 shortages take root across major markets, Apple CEO Tim Cook recently acknowledged that the shortfall between supply and demand remains wide with little chance of equilibrium before early next year.

Reports indicate that global shortages have also hampered Taiwan consumers from acquiring the coveted smartphone, with the situation becoming one of the primary factors that has compelled a number of local telecoms carriers to extend their offers of unlimited and unthrottled 4G contracts past the original cut-off date at the end of October in an attempt to appease disappointed subscribers unable to procure the handset.

Retailers stated that the ongoing ��iPhone 6 mania�� is poised to be extended by widespread shortages, adding that the dearth in the 64-gigabyte version of the iPhone 6 Plus is especially pronounced, with currently available inventory levels, estimated at around 50,000 to 60,000 units capable of satisfying less than a one-fourth portion of overall demand. Consumers are also not likely to be able to purchase iPhones at conventional retail outlets, and they are advised to seek their new flagship products through telecoms carriers.

Taiwan Suppliers Ride High on Wave of Newly Launched

Apple Tablets In addition to handsets, Apple recently also launched the iPad Air 2 and iPad mini 3 tablet computers, boosting the prospects of a number of Taiwan suppliers and manufacturers including Hon Hai Precision Industry Co. (�E��), Compal Electronics (���_) and Pegatron Co. (�M��). Backing their optimistic outlook on Apple’s Taiwan-based suppliers, institutional investors over the course of last week bought more than 2 million Hon Hai shares and more than 1 million Compal and Pegatron shares.

Although thus far the new iPads have not attained National Communication Commission approval, they are expected to hit store shelves in Taiwan before the end of this month.