It's good news for suppliers as sales of Apple’s iPhone 4S exceeded expectations.
DMG Research noted:
Apple’s iPhone 4S sold far better than expected, boosting the December quarter iPhone sales to 37 million unit, nearly double from the previous record of 20.3 million. As a result, profit doubled to US$13.1 billion on the back of US$46.3 billion revenue (+73% YoY).
We believe that the news serves as a positive catalyst to the Singapore-listed Apple suppliers, reaffirming our BUY call on Hi-P (BUY, TP S$0.79). With exciting new products such as Ipad3 in the pipeline, we expect Hi-P to continue to benefit from the pick-up in orders, achieving record breaking sales this year.
On a side note, both Armstrong (SELL, TPS$0.195) and Broadway Industrial (NEUTRAL, TPS$0.30) are expected to report a loss-making 4QFY11 due to one-off impairment charge and forex losses.
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