Largan posts 2nd-largest sales in 2024

Taipei, Jan. 6 (CNA) Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., posted its second highest ever sales in 2024, up more than 20 percent from a year earlier, on the back of a recovery in global demand for consumer electronic gadgets.

In a statement, Largan said on Sunday that consolidated sales for 2024 rose 22 percent from a year earlier to NT$59.46 billion (US$1.81 billion), second only to NT$60.75 billion reported in 2019.

In the fourth quarter, Largan's consolidated sales stood at NT$18.2 billion, up 2 percent from a year earlier but down 4 percent from a quarter earlier.

In December alone, Largan posted NT$5.64 billion in consolidated sales, up 18 percent from a year earlier but down 6 percent from a month earlier.

Largan said its 20 mega-pixel lenses and higher -- which have a higher profit margin -- accounted for 20-30 percent of total sales in December, with 10-20 mega-pixel lenses making up 60-70 percent, 8 mega-pixel lenses representing less than 10 percent, and other mega-pixel lenses making up 10-20 percent.

The company said slow season effects in the first quarter of this year are expected to affect its revenue momentum in January, when sales could fall from December.

Largan has scheduled an investor conference for Jan. 9 to detail its fourth quarter results and give guidance for the first quarter of this year.

Market analysts said after the iPhone 16's Apple Intelligence function became available in the United States, United Kingdom, Canada, Australia and New Zealand in 2024, the function will become available in other countries such as Taiwan, China, Japan, Spain and France in 2025, which could push up shipments of the latest iPhone.

As one of the most important smartphone camera lens suppliers to Apple Inc., Largan is expected to benefit from such a trend this year, analysts said.

In addition, China announced last week that the government will provide subsidies on purchases of handheld devices such as smartphones and tablet computers which is likely to benefit Largan, as it has several major Chinese smartphone brands as customers.