Shares of Hon Hai Precision Industry Co. rallied Thursday on the Taiwan Stock Exchange thanks to its success in launching 60-inch LED TV in North America and in securing higher contracting fees from Apple Inc., according to local media reports.
Citing latest market surveys, the reports said Vizio-brand 60-inch LED TV, which is assembled by Hon Hai and equipped with flat panel manufactured by Sakai Display Product -- a Japan-based joint venture of Hon Hai and Japanese firm Sharp Corp. -- has replaced similar item released by Samsung Electronics Co. of South Korea as the best-selling brand in the North American market.
Moreover, the reports said Apple has tentatively agreed to adjust contracting fees for Hon Hai, the world's largest contract electronics maker which has been commissioned to assemble Apple's iconic mobile devices like iPhone 5 and iPad 2.
Hon Hai and Apple will begin to negotiate the contracting fee adjustment range in the near future, the reports said.
Against this backdrop, market analysts said Hon Hai's Q4 revenues could hit NT$1 trillion (US$34.13 billion).
The Hon Hai stock gained 0.1 percent Thursday to close at NT$87.5 amid brisk trading.
The stock exchange's overall market turnover was relatively low amid lingering economic concerns, but Hon Hai beat all other listed firms in terms of trading volume, with 26.025 million shares changing hands during the trading session.
The following are excerpts from a special report in the Thursday edition of the United Evening News:
Vizio-brand 60-inch LED TV becomes a hit immediately after being launched in North America early this month at an amazingly low price of US$999.
Market reports said the new big-screen TV has emerged as the top-selling items at retailing stores around the North american market in the first four days of its launch.
The brand has defeated similar Samsung-brand TV in terms of sales volume, selling speed and product review, market sources said.
A North American professional magazine Home Theater gives the Vizio 60-inch LED TV a 4.5-star rating and forecasts that the device will continue enjoying flourishing sales during the Thanksgiving and Christmas holiday shopping seasons.
The Vizio 60-inch LED TV marks the first collaborative project between Hon Hai and Sharp Corp.
Market analysts said its success will help usher in other Hon Hai-Sharp joint-venture projects in the future, including using Sharp's highly advanced IGZO technology in producing display panels for various sizes of TVs, iPad and smartphones.
Meanwhile, Apple's iPad mini is expected to be debut next week and Q4 iPhone 5 shipments are estimated at 50 million units. If contracting fees are raised by an average of 5 percent, market analysts said, Hon Hai's Q4 revenues could increase by more than NT$15 billion. (Oct. 18, 2012).
(By Sofia Wu)