Early pre-order data of Apple Inc’s new iPhones due to be released tomorrow show that consumers generally favor the larger-screen version, which is likely to benefit certain suppliers in Taiwan, CIMB Securities Ltd said yesterday.
The Hong Kong-based brokerage said the preference for the 5.5-inch screen iPhone 6 Plus over the 4.7-inch screen iPhone 6 would benefit system assembler Hon Hai Precision Industry Co (鴻海精密), camera lens supplier Largan Precision Co (大立光) and metal casing manufacturer Foxconn Technology Co (鴻準).
“In terms of components, we expect both Largan and Foxconn Tech to benefit most if consumers favor the iPhone 6 Plus, given that they have a greater share of the [components of the] high-end iPhone 6 Plus,” CIMB analysts led by Wang Wanli (王萬里) said in a research note.
Based on the CIMB’s supply-chain checks, Hon Hai is iPhone 6 Plus’ sole system assembler, Largan is the primary lens supplier of the iPhone 6, but sole supplier of the iPhone 6 Plus, while Foxconn Technology has a 50 percent metal casing order allocation for the iPhone 6 Plus.
There are debates if big screens suit consumers better, but CIMB said most consumers might consider the iPhone 6 Plus a bargain because the price difference between the two models is only US$100, and the iPhone 6 Plus offers better resolution, larger battery capacity and a camera lens supported with an optical image stabilizer (OIS).
The brokerage said the new iPhones could be the best-selling products in the iPhone’s history, given that the 4 million units ordered on the first day pre-orders were made available far exceeded the 2.5 million units booked for the iPhone 5S during the first week of pre-orders for the model last year.
“Although it is still too early to forecast consumer preferences, we believe it is safer for investors to focus on the iPhone 6 Plus supply chain companies because the share price downside risk of the iPhone 6 supply chain is higher,” Wang and his colleagues wrote.
The estimate is due to a sensitivity analysis showing that companies without iPhone 6P exposure — such as metal casing manufacturer Catcher Technology Co (可成) and Pegatron Corp (和碩), another system assembler — are more vulnerable to this change in consumer preference, CIMB analysts said.
However, CIMB said its major concern is not about end-market demand, but rather the potential imbalance in supply and demand in the second half of this year.
CIMB said if Apple is unable to fulfill the incremental iPhone 6 Plus demand in upcoming months due to potential yield and tight component supply issues, both the iPhone 6 and iPhone 6 Plus supply chains would be affected, with metal casing makers likely suffering the most.
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
TRENDS: The bitcoin rally sparked by US president-elect Donald Trump’s victory has slowed down, partly due to outflows from exchange-traded funds for the token Gold is heading for one of its biggest annual gains this century, with a 27 percent advance that has been fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks. While bullion has ticked lower since US president-elect Donald Trump’s sweeping victory in last month’s election, its gains this year still outstrip most other commodities. Base metals have had a mixed year, while iron ore has tumbled, and lithium’s woes have deepened. The varied performances highlight the absence of a single, over-riding driver that has steered the complex’s fortunes, while also putting the spotlight
Twenty years after he was a young, struggling actor in Toronto, Thomas Lo (盧瑞麟) is now the one giving young Asian actors their big breaks. He just had to go to Hong Kong to do it. The Chinese Canadian has been the creative director of one of the territory’s biggest TV broadcasting companies for only a few years, but is already making original English-language content to reach viewers around the world. “It was a bit of a full-circle moment for me,” Lo said. “You see more Asians, but you’re still seeing the same Asians on screen, right? We’re looking for more opportunities
RSS