Apple Inc. (NASDAQ:AAPL) is reportedly nearing the launch of the most awaited iPhone 6, and the same is fueling sales of Asian economies and suppliers. Roll-out planning of the gadget is, also, bringing good times for the Asian economies, increasing revenue at component makers and allowing strengthening electronic exports from some nations, according to a report from the Wall Street Journal.
Apple enhancing Asian exports
Previously WSJ citing sources aware of the development reported that Apple wants suppliers to manufacture 80 million units, which is three times more than the initial orders for the iPhone 5S and 5C. The iPhone maker is rumored to break its past trend by launching two-iPhone models in the fall and has been sourcing parts across Asia prior to the production, in August.
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Apple iPhone could contribute the quarterly demand for the country’s electronics exports by 5%, according to government officials in Japan. For Japan, electronic components exports were up 4.4% in May while the total exports were down 2.7%.
Taiwan export orders, which are the precursor of the actual exports, rose highest in 17 months in June by almost 8.6%, fuelled by the double-digit gains in semiconductor output or specifically more supply to Apple.
Analyst Randy Abrams of Credit Suisse expect iPhone production to contribute $17.9 billion to $26.9 billion in revenue this year for Taiwanese companies. Also, Tim Condon, an economist with ING in Singapore believes Taiwan’s exports, which have been sluggish since 2011, to get a boost due to the Apple iPhone.
Many suppliers benefiting from iPhone
Though Apple has not revealed the name of the suppliers, analysts are estimating companies from Taiwan, Japan and South Korea to supply vital components like displays, camera lenses and microprocessors going by the history. The companies given the contracts for manufacturing parts are posting higher earnings or guidance, and analysts are interpreting the surge as an effect of Apple on whole sector and economy. These Asian component suppliers, also, cater to the needs of other smartphone companies, but Apple is the biggest customer by far.
Apple Inc.’s two most prominent manufacturers are Japan Display and LG Display of South Korea, supplying the most expensive part of the iPhone. Metal casing of the phone is developed by Catcher technology Co of Taiwan and Largan Precision CO of Taiwan makes camera lenses. South Korea’s Samsung Electronics CO, also, supplies memory chips and microprocessors for Apple. Hon Hai Precisions and Pegatron Corp have, also, assembled the iPhone in the past.