Apple Suppliers Made Slow Progress in August

Taiwanese ODMs Focxonn and Pegatron are both lined up to produce new iPhones for Apple, with shipments expected to reach 80 million units by the end of this year. However, the fact that the new iPhones did not ship in August held back both company’s sales performance.

Foxconn’s sales improved 5.7% in August from the previous month, though this was 2% lower than August 2013 at NT$275 billion ($9 billion). Sales to date reached NT$2.3 trillion ($75.8 billion) broadly flat year on year. The company said that the growth was primarily thanks to strong shipments of consumer electronics and slight growth in PC shipments, but was held back by a flat performance in Foxconn’s communication-related products.

Pegatron reported a 3.3% sequential and 2.2% YoY drop in sales in August to NT$65 billion ($2.1 billion), bringing sales for the first eight months of the year to NT$560.8 billion ($18.5 billion), little changed from the same period of last year. Analysts attributed the decline to lower shipments of notebook computers during August and no contribution from its shipments of the iPhone 6.