Largan Precision Co., a supplier of smartphone camera lens to Apple Inc., has seen its August sales soar to a nine-month high amid a glut of orders being placed by the American electronics giant in preparation for the launch of the next generation iPhone in September.
In a statement, Largan said on Tuesday that it posted NT$4.55 billion (US$143 million) in consolidated sales, up 30 percent from a month earlier and up 2 percent from a year earlier. The August figure was the highest since November 2022, when Largan's revenue stood at NT$5.23 billion.
Largan said the higher sales in August came after its major clients built up their inventories, without elaborating.
However, some analysts speculated that Apple was behind the purchase as it prepares to unveil its new iPhone in the United States on Sept. 13, adding that Largan is leading its competitors in high-end smartphone camera lens technology development.
August also marked the first time Largan reported month-on-month and year-on-year sales growth in nine months.
In August, 20 mega-pixel lenses and higher -- which have a higher profit margin -- accounted for 10-20 percent of Largan's total sales, with 10-20 mega-pixel lenses making up 50-60 percent, 8 mega-pixel lenses representing 10 percent, and products other than camera lenses making up the remaining 20-30 percent, the company said.
In the first eight months of this year, Largan's consolidated sales fell 10 percent from a year earlier to NT$25.38 billion due to weakening global demand for smartphones amid high inflation and interest rate hikes.
Largan said this momentum of sales growth is expected to continue into September, but that it was hard to predict sales in October because the company needs to observe how the market will react to new smartphone models.
Some analysts appeared upbeat and predicted it could be possible for Largan to generate more than NT$12.6 billion in consolidated sales during the third quarter -- a traditional peak season -- up more than 50 percent from the second quarter.
Despite soaring sales in August, Largan shares fell 2.08 percent to close at NT$2,120.00 on the Taiwan Stock Exchange, while the Taiex, the weighted index on the main board, ended down 0.32 percent at 16,738.16.
Analysts said the losses came because investors rushed to lock in the gains from Largan shares that had accumulated in recent sessions.
Before Wednesday, the stock had surged more than 12 percent from a recent low of NT$1,910.00 reported on Aug. 25.
