Major EMS Providers to See Revenue Growths in Q3, 2014

Thanks to international vendors' schedules to launch new product models in the third quarter, EMS (electronics manufacturing services) providers in Taiwan expect to see shipments peak in the second half, according to industry sources.

Institutional investors say that Apple's new smartphone model iPhone 6 is expected to be launched in September to draw global attention in the second half. The new model's major contract assembler Hon Hai Precision Ind. Co., Ltd. is scheduled to start trial production in late June and mass production in July or August.

Thanks to the new order for five-in-one tablet (smartphone + tablet) from its parent company Asustek Computer Inc., Pegatron Corp. is expected to see significant growth in shipments in the third quarter.

In conjunction with rising demand from the notebook PC market, Quanta Computer Inc., Compal Electronics Inc., and Wistron Corp.all saw their shipments rise significantly in May over the previous month.

Quanta shipped about 3.9 million notebook PCs in May, up 18% from the previous month, or month-on-month (MoM). Compal delivered about 3.5 million units, a 30% MoM growth. Wistron shipped 1.6 million units in the same period, a 6.7% MoM increase, all indicate rising order placements by international customers as HP, Dell, Acer, Asus etc.

Institutional investors say that replacement purchases (due to Microsoft's stopping of support of Windows XP) and new-model launches are expected to greatly boost consumer demand for notebook PCs in the third quarter, hence leading to major EMS providers'  expectation of sales growths month-by-month.

Major EMS Providers' Revenues (May 2014)
	May Revenue	MoM
Hon Hai	NT$267.9 billion	-8.9%
Compal	NT$68.0 billion	18.9%
Quanta	NT$70.1 billion	-3.4%
Wistron	NT$43.8 billion	2.3%
Pegatron	NT$65.9 billion	-9.1%
Source: Market Observation Post System, Taiwan Stock Exchange