Apple iPod benefits Far East stocks
Apple’s successful iPod continues to deliver cheer to the company’s partners, particularly component manufacturers in the Far East.
With Apple’s ‘Made for iPod’ programme reportedly requiring authorized manufacturers to buy their components from approved suppliers, it appears Far East makers are set to see further benison from the culture-making iPod’s largesse.
Taiwanese investment houses have recognised the momentum and are advising investors there that, “electronics component makers are set to take over from electronics assemblers as some of the most actively traded targets”, according to the Taipei Times.
Inventec is the biggest iPod component supplier, and its shares have climbed 30 per cent in the last three months.
This isn’t the end of the spike, said investment adviser KGI Securities: “We don’t think the share prices of iPod-related companies have fully factored in future growth prospects,” they said.
Local investment hot tips
A variety of local firms are singled-out for iPod paced prosperity: Cheng Uei Precision Industry; Ji-Haw Industrial; and Mustang Industrial are se5t to benefit the most.
Potential growth could be seen in: Jin-Haw, Taiwan’s number two maker of cables for game consoles and MP3 players, and Acon Advanced Connectek, an electronics connector maker.
Taipei Times adds: “KGI Securities also recommended investors buy other iPod-related stocks, naming Asustek Computer, a possible candidate to make the iPod shuffle for Apple this year, as well as Catcher Technology, a magnesium casing supplier for iPod mini, and Powertech Technology, a flash memory testing and packaging service provider.”
iPod sales are projected to double by the end of 2005.