Hon Hai shipments may more than double
By Kathryn Chiu ,The China PostTAIPEI, Taiwan -- Dismissing rumors that Apple may delay the launch of new products, sources on Thursday revealed that new iPads will land as scheduled and boost Hon Hai Precision's shipments by more than double in the second half.
July 5, 2013, 12:10 am TWN
Although competition is biting into Apple's market share and Hon Hai, the major assembler of iPhones and iPads, is hurrying to diversify, sources in the Taiwanese supply chain revealed that Hon Hai actually doesn't have a plan to give up on its Apple pie.
Apple and Hon Hai's local suppliers revealed to the United Evening News that the iPad 5 and iPad mini 2 will hit stores in August and September as planned, with Hon Hai still the major contract manufacturer.
The possibility of a delay to the iPad mini 2's release date had been bandied about by Taipei-based tipster website Digitimes, citing industry sources. The website also suggested that the full-sized, 9.7-inch iPad 5 will still hit its expected third-quarter launch window.
Sources also said that Pegatron's join-in is not a deadly threat to Hon Hai since there had been thorough communication with Apple and both sides had reached a mutual understanding.
At its annual general shareholder meeting last month, Pegatron Chairman T.H. Tung confirmed that the company will see to the manufacture of Apple's budget iPhone targeted at emerging markets. He also revealed that Pegatron and Apple will further collaborate on the iPad range.
According to the United Evening News, with the contribution of Apple's new iPad series, Hon Hai's bottom line is preparing to take off in July and August, and total shipments for the second half are expected to surge by 50-60 percent.
In late June, Jefferies analyst Peter Minsek cut his iPhone sales estimates for the third quarter to 27 million from 30 million. He also noted that Apple's new device, an iPhone 5S or iPhone 6, won't hit stores until the fourth quarter or later in the second quarter.
Another rumor has it that Apple is expected to launch a new wearable device and iTV by the end of 2013, taking the partnership between Hon Hai and Apple to the next level since both new products are seen as likely to be Apple's next game-changing devices.
Apple has recently expanded its “iWatch” trademark filing world tour to Taiwan, Japan and Mexico. A trademark is believed to be the official start of Apple's wearable devices in the near future.
Moreover, Apple has hired the chief executive officer of iconic fashion house Yves Saint Laurent to be the vice president of its special project division, adding to the already circulating rumors that its next device will be some form of wearable computing.