2011/07/21 13:08:37

Taipei, July 21 (CNA) Shares of contract PC maker Pegatron Corp. staged a rally in Thursday morning trade on local media reports that the company has just secured large orders from U.S. consumer electronics giant Apple to churn out iPads and iPhones, dealers said.

The orders taken by Pegatron were the result of Apple’s intention to shift part of its orders from Hon Hai Precision Industry Co. Ltd., the world’s largest contract electronics producer, in a bid to broaden its supply chain, the report said.

During the trade, Pegatron rose 3.98 percent to NT$35.25 (US$1.22) with 14.11 million shares changing hands, while Hon Hai fell 1.5 percent to NT$91.80. The benchmark weighted index was down 0.04 percent at 8,702.38 points.

“The speculation of Apple’s orders to Pegatron has been circulated in the market since last week, and today’s media reports triggered massive interest in the stock,” Grand Cathay Securities analyst Mars Hsu said, referring to the large trading volume.

While Pegatron and Hon Hai declined to comment on any specific customers, Hsu said the speculation could be true.

Hon Hai has served as the major contract maker for Apple, assembling iPhones and iPads largely through its broad production base in China.

“To lower risks, any company, including Apple, does not want to place all of its eggs in one basket. It is necessary for Apple to find another assembler or more,” Hsu said.

Although some foreign brokerages doubt few contract electronics makers can rival Hon Hai’s production capacity to satisfy Apple’s appetite, Hsu said Pegatron could be a good partner of the U.S. customer.

“Judging from sales of Pegatron in the first half of this year, I estimate Pegatron’s capacity utilization stood at a little more than 50 percent. The company has the capacity to serve Apple,” Hsu said.

In that six month period, Pegatron, which is the production arm of PC vendor AsusTek Computer, posted NT$185.80 billion in revenue. Hsu said the Apple order reports have prompted many retail investors to buy into the stock, while selling in Hon Hai emerged to take profit from the gains posted from the previous session.

“Amid concerns over slowing global demand, local PC makers have been under great pressure in recent sessions with valuations on the decline,” Hsu said.”Pegatron’s share price appears attractive.”

Hsu said there is some room for the stock to go higher before it moves closer to technical resistance at the range of NT$37-NT$38.

source:http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201107210010

2011/07/21 11:37:37

Taipei, July 21 (CNA) Taiwan’s Acer Inc. became the second-largest PC vendor in the Asia-Pacific region, excluding Japan, in the second quarter of 2011, as the company managed to sort out its integration issues with its retail partner Founder Group in China, according to a report released Wednesday by the International Data Corp. (IDC).

The U.S.-based research firm said Acer’s market share grew to 11.9 percent in this period from 10.2 percent in the first quarter, surpassing Hewlett-Packard Co. (10.5 percent) and Dell Inc. (10.4 percent) to seize the No. 2 spot. The figure also represented a 62 percent growth from a year earlier, when Acer only had an 8.3 percent share in the market.

Lenovo, which remained in first place with a 22.5 percent share, surged ahead in its home market of China, with market share boosted by its ongoing expansion efforts to lower-tier Chinese cities as it recovers from its seasonally low first quarter.

“Inflation and channel inventory are thorns in the side of many countries here in Asia,” said Bryan Ma, associate vice president for client devices research at IDC Asia and Pacific. “Fortunately, the market is continuing to move ahead despite these challenges, boosting confidence that the region will still post double-digit growth in the upcoming years.”

In the April-June period, PC shipments in the region increased 13 percent year-on-year to reach 30.1 million units as China shrugged off its weakness from the previous quarter to post robust growth amid ongoing inflationary pressures.

Indonesia also marched ahead, with vendors shipping aggressively to rural markets, although concerns about inventory in the channels remain, the IDC said. India bucked this trend, as inflation continued to hurt consumer buying sentiment in the South Asian country.

source:http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201107210007

2011/07/16 15:41:15

Taipei, July 16 (CNA) The World Bank has urged Taiwanese companies to pursue commercial opportunities in the African LED lighting market in support of the bank’s program to light up the continent, a local industrial group said Saturday.

The Taiwan-based Photonics Industry & Technology Development Association (PIDA) cited Rodd Eddy, an International Finance Corp. (IFC) consultant, as saying the World Bank hopes Taiwanese companies will participate in the “Lighting Africa” program because the island is among the world’s largest LED and photovoltaic goods makers.

The IFC also has high expectations for Taiwan, hoping it will provide cutting edge LED lighting technology to the region.

The IFC, a member of the World Bank Group, and the World Bank jointly run Lighting Africa, which is expected to generate about US$10 billion (NT$289 billion) in business for suppliers, including those in Taiwan.

The program is mobilizing the private sector to build sustainable markets to provide safe, affordable and modern off-grid lighting to 2.5 million people on the continent by 2012 and to 250 million people by 2030, said the IFC, which provides investment and advisory services under to help the private sector in developing countries.

Eddy said Taiwanese companies should go ahead and explore the African market and gather information there on how to build a distribution network and establish a strong presence in the region.

The consultant said the Lighting Africa program, which has devoted considerable effort to surveying the African market, will work with Taiwanese enterprises by providing them useful and necessary business data to lower market risks.

In addition, the program will assist Taiwanese companies in getting their lighting products certified and serve as a bridge between them and African dealers, Eddy said.

Up to now, two Taiwanese firms have sought certifications for their products and expect to become part of the supply chain under the program.

source:http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201107160005