Luxshare Precision Industry Co. received a slew of target price upgrades from analysts after the Chinese assembler of Apple Inc.’s AirPods revealed a roughly 80% spike in first-half profit and sales.
The company, regarded as a bellwether for China’s consumer hardware industry, is expected to become an increasingly important supplier of components for wearable devices like the Apple Watch, some analysts say. Goldman, CICC and Morgan Stanley were among the investment houses that lifted their stock price target on the consumer hardware firm after it posted results late Tuesday.
The Shenzhen-based firm has in past years become a primary supplier of AirPods, one of the fastest-selling consumer accessories in the market. TF International analyst Kuo Ming-chi estimates AirPod shipments could rise 60%-70% for 2019, and 50%-60% for 2020…
Analysts’ optimism aside, the Chinese company itself warned Tuesday about the uncertain impact of global trade ructions. Trump-administration tariffs on Chinese-made products, including eventually a swathe of consumer and mobile electronics, will pressure contract manufacturers’ margins and accelerate a costly shift of capacity away from China over time.
MacDailyNews Take: People certainly can’t get enough AirPods the world over!