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Apple's (AAPL) Aim to Diversify Manufacturers Pushes Pegatron to Strong Q4 Results

March 24, 2014 8:24 AM EDT Send to a Friend
Apple, Inc. (Nasdaq: AAPL) shares are indicated higher following strong quarterly results from a key supplier.

Taiwan-based Pegatron Corp. reported Q4 earnings of NT$3.38 billion, from NT$2.77 billion in the same period last year. The analyst consensus was at NT$2.84 billion. Revenue for the three-month period ending December 31, 2013, fell from NT$267.04 billion down to NT$265.96 billion.

Apple has looked for manufacturing partners outside of Hon Hai Precision (Foxconn), with Pegatron being one of the main beneficiaries from the move as of recent. Pegatron previously made older iPhone models, but was selected to manufacture the iPhone 5c last year. Apple now accounts for 40 percent of the company's revenue.

Tablet, smartphone, and game console shipments are likely to fall 15 to 20 percent in Q1 from Q4, Pegatron noted. Q1 is generally the slower part of the year, with few companies launching new devices.

Apple is up 1 percent early.




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