“Investors wanting a slice of the crazy demand expected for Apple Inc’s next version of the iPhone are rushing for what they believe is more profitable than investing in the U.S. smartphone maker: Taiwanese Apple component suppliers,” Faith Hung reports for Reuters.
“Shares of suppliers, such as camera module maker Largan Precision, are at record levels on such proxy betting,” Hung reports. “The surrogate betting itself isn’t new. But relatively inexpensive Taiwan shares, the extra mileage the suppliers get from duplicating iPhone features for other smartphone makers and a lack of long-term visibility for the U.S. tech giant, make the supply chain an inviting investment prospect.”
“The underlying assumption is that the stocks of these smaller firms will move faster than those of Apple Inc itself, if the iPhone 6 is a success,” Hung reports. “Other lead gainers have been Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s top contract chipmaker, and Hon Hai Precision. The former makes next generation A8 chips while the latter assembles iPhones.”
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