“Taiwan’s Pegatron Corp expects revenue from assembling communication devices such as Apple Inc’s next-generation smartphone to rise sharply the third quarter, damping the impact of decline in the contract manufacturer’s traditional business of personal computers,” Michael Gold reports for Reuters.
“The forecast comes as Pegatron shifts focus to mobile devices after enduring two years of sliding global PC demand – a move which coincided with Apple diversifying its supply chain away from Hon Hai Precision Industry Co Ltd.,” Gold reports. “Pegatron on Monday projected revenue from devices excluding PCs to rise by 20 to 30 percent from the second quarter, thanks to iPhones that are widely expected to join the trend toward larger screens.”
Gold reports, “Pegatron, which analysts say will assemble up to 30 percent of the first wave of new iPhones, should benefit from increased presence in the Apple supply chain for the foreseeable future, said KGI Securities analyst Angela Hsiang. ‘We expect 2015 sales and earnings growth to remain decent, as we project iPhone replacement demand will continue into 2015,’ Hsiang wrote in a research report ahead of the earnings release.”
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