Largan July sales hit 10month high

Taipei, Largan Precision Co., a Taiwanese supplier of smartphone camera lenses to Apple Inc., reported Monday that its July sales were the highest in 10 months as the peak season for the electronics industry began.

In a statement, Largan said it posted consolidated sales of NT$5.47 billion (US$173 million) in July, the highest since September 2018, when it had sales of NT$5.51 billion.

The July sales were up 34 percent from June, when its sales were fell 18.92 percent from the previous month because of business restrictions imposed by Washington in May against Chinese smartphone brand Huawei Technologies Inc. amid trade tensions between Washington and Beijing.

Huawei is a major Largan client.

The latest sales report also showed a 3 percent yearonyear increase for Largan.

In July, lenses of more than 20 megapixels, which command a higher profit margin, accounted for 2030 percent of Largan's total sales, lenses with 1020 megapixel lenses made up 5060 percent of sales, and 810 megapixel lenses represented 1020 percent of the total, according to the company.

In the first seven months of this year, Largan posted consolidated sales of NT$29.38 billion, up 11 percent from a year earlier.

Analysts attributed the spike in July sales to an increase in orders from Apple, which is expected to unveil the next generation iPhones in September.

In response, Largan said peak season effects are expected to continue to push up its sales momentum in August, when its sales could beat July's, as its major clients are or will be launching new models.

Analysts cautioned, however, that potential new tariffs imposed by the United States on smartphones made in China could undermine consumer willingness to replace their smartphones and limit demand for the devices.

Largan released the sales report after the close of Taiwan's stock market on Monday, when its shares closed down 0.59 percent at NT$3,875.00.

That beat the broader market, as the Taiex ended down 1.19 percent at 10,423.41.

Source: Focus Taiwan News Channel