We were first to report last week that iPhone casing supplier Catcher Technology posted better than expected sales for July due to Apple's new iPhones that are now in production. Today we've found yet another such report. According to an overseas report, "Taiwan's Pegatron expects revenue from assembling communication devices such as Apple's next-generation smartphone to rise sharply the third quarter, damping the impact of decline in the contract manufacturer's traditional business of personal computers (PC)."
More specifically, the report noted that "Pegatron stated on Monday that projected revenue from devices excluding PCs to rise by 20 to 30% from the second quarter, thanks to iPhones that are widely expected to join the trend toward larger screens."
The report further noted that "The forecast comes as Pegatron shifts focus to mobile devices after enduring two years of sliding global PC demand — a move which coincided with Apple diversifying its supply chain away from Hon Hai Precision Industry Co.
This could explain why Foxconn Electronics (Hon Hai Precision industry) reported late last week that consolidated revenues were at their lowest monthly level since March 2013. Foxconn reported that the revenue drop was mainly due to decreased shipments of consumer electronics.
Analysts filled in some of the blanks by stating that assembly of new products involved more complicated processes and that large-scale volume production had not yet been achieved. The analysts unfortunately didn't elaborate on what the nature of the "complicated processes" involved.