Apple orders spur growth for Taiwanese parts makers

Touch display manufacturers Wintek and TPK Holding reported strong Q1 revenues

Two Taiwanese firms that make touchscreen panels for Apple have reported sharp first-quarter revenue gains, which analysts said came from soaring demand for iPhones and iPads.

Taiwanese firms supplying components for Apple’s products will continue to see strong revenue growth this year, these analysts said.

Wintek's revenue shot up 181 percent to NT$21 billion (US$717 million at the exchange rate on the last day of the quarter) compared to the same period of 2010. The company made a net profit of NT$1.36 billion, up from a loss in the first quarter of last year. The company said on Thursday that its revenue was up on improved demand for iPhones and iPads.

Last year 60 percent of the flat-panel maker's business came from Apple, which should reach 70 percent this year, a company official said.

Fellow Taiwanese panel maker TPK Holding said its quarterly revenue had risen 398 percent year-on-year to NT$25.3 billion, with net profits of NT$2.5 billion up 658 percent. TPK would not say how much of its business is from Apple, but analysts said it comes to around half.

"Of course Apple is the main reason (for revenue gains), to be precise the touch panel module," said Ian Peng, an analyst with DigiTimes Research in Taipei. "TPK is integrated with Apple’s products."

Sales of the iPhone 4 and the first iPad drove most of the quarter's demand, Peng said, noting that the iPad 2 had little impact on earnings of parts suppliers because of shipment delays.

Apple shipped 18.65 million iPhones in the first quarter, up 113 percent from the same period a year earlier. It also moved 4.69 million iPads, which began selling in April 2010, over the quarter.

Apple will ship 39.7 million iPads this year, market research firm IHS iSuppli forecast.

Taiwanese firms such as Compeq Manufacturing, Dynapack, GCE, and Simplo Technology also make parts for Apple products, analysts in Taipei said. The island's Foxconn Electronics does final assembly of the products.

Parts suppliers will continue to see strong revenues as Apple rolls out new high-end products every year, David Wolf, CEO of Wolf Group Asia in Beijing, said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Wintekhardware systemsiPhonePhonesComponentstablet PCslaptopsdisplaysTPK HoldingsAppleconsumer electronics

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?