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Hon Hai, Pegatron secure orders for new iPhone: analyst

Hon Hai, Pegatron secure orders for new iPhone: analyst

Taipei, Aug. 8 (CNA) 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 province, 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. (By Jalen Chung and Frances Huang)


Updated : 2021-09-28 09:24 GMT+08:00