Taiwan's Parts Suppliers to Benefit From Apple's Move to Raise iPhone Sales

Taipei, March 3, 2008 (CENS)--After selling 4 million iPhones in the second half of last year, Apple Inc. aims to boost the figure to 10 million units for the entire year of 2008, according to Tim Cook, Apple's CEO. This will benefit its contract suppliers of parts for the product in Taiwan.

Taiwan's suppliers of key parts for iPhones noted that although Apple earlier adjusted down its sales projection of iPhones for the first quarter, they are still optimistic about hot sales of iPhone, as the product features a fairly user-friendly interface and Apple will add improved functions, like Push e-mail, to it and unveil a 3G model this year.

Hon Hai Precision Industry Co., Ltd. is the major supplier of Apple's first-generation iPhones, assembling the products with outsourced parts, such as touch panels and passive components, from Taiwanese suppliers, including Cheng Uei Precision Industry Co., Ltd., Foxconn Technology Group, Catcher Technology Co., Largan Precision Co., TXC Corp. and Entery Industrial Co.

Apple's CEO Steve Jobs said that Apple has sold nearly 4 million iPhones, including 2.315 million units in the last fourth quarter, since its debut last June. The brand originally projected to sell 2 million units in the first quarter; however, with lackluster sales in the European market during the fourth quarter of 2007, it has cut its sales projection to about 1.2 million units. This is expected to result in a 10% decline in sales performance of Taiwan's parts suppliers in the first quarter, according to industry insiders.

Taiwanese Suppliers of iPhone Parts
Company	Parts Supply	Sales Revenue of 2007	Estimated Annual Growth in 2008 Revenue
Hong Hai Precision Industry Co., Ltd.	Assembly	NT$1236.8 B.	30%
Wintek Corp.	Touch Panel	NT$31.59 B.	40-50%
Largan Precision Co.	Camera Lens	NT$5.88 B.	30%
Cheng Uei Precision Industry Co., Ltd.	Connector	NT$42.84 B.	30%
Unimicron Technology Corp.	Printed Circuit Board	NT$47.28 B.	20%
TXC Corp.	Quartz Component	NT$6.24 B.	25%
Foxconn Technology Group	Case	NT$1334.6 B.	35%
Catcher Technology Co.	Case	NT$18.1 B.	30%
Nan Ya PCB Corp.	Printed Circuit Board	NT$38.7 B.	10%
Entery Industrial Co.	Connector	NT$2.49 B.	--

Source: Companies and Institutional Investors