Taiwan could report export order growth for 2nd straight month

Taiwan is expected to report a year-on-year increase in monthly export orders for the second consecutive month in September, largely on the back of the launch of Apple Inc.’s latest iPhone models, the Ministry of Economic Affairs (MOEA) said Saturday.

The U.S. consumer electronics giant unveiled the 4.7-inch iPhone 7 and 5.5-inch iPhone 7 Plus on Sept. 7, with global sales rolled out on Sept. 16.

The MOEA said that the new iPhones have been well received by the market, as a result of which local suppliers to Apple have benefited from increased orders from the U.S. firm.

The ministry is scheduled to release September export order data on Oct. 20.

In August, Taiwan’s export orders rose 8.3 percent year-on-year to reach US$37.93 billion, ending a 16-month falling streak caused by weak global demand.

The MOEA said that the improvements in export orders in August largely came from a rebound in orders enjoyed by the electronics sector, in particular orders from Apple, which was in the process of building up inventory in preparation for the launch of the new iPhones.

The effect of Apple’s orders continued into September, the ministry said.

Local suppliers to Apple include Taiwan Semiconductor Manufacturing Co. (???), which makes the A10 processor for the new iPhones and Hon Hai Precision Industry Co. (??), which is one of the main assemblers of iPhones and iPads.

Largan Precision Co. (???), a smartphone camera lens producer, is also among the Apple suppliers and provides the major dual lenses for the iPhone 7 Plus, the first iPhone model equipped with a dual-lens camera.

Local Apple suppliers come from a wide range of high-tech industries and account for about 40 percent of local equity market capitalization.

In addition to increased orders from Apple, the MOEA said, peak season effect in the global high-tech market has also boosted demand for computers and related devices from international brands, which has raised orders at Taiwanese firms in their supply chains.

MOEA said that an upturn in Internet, automotive electronics and virtual reality business has started to boost Taiwan’s outbound sales of information/communications and electronic devices.

The ministry said that export orders for these two sectors in September could top US$10 billion.

The ministry added that with international crude oil and steel prices showing signs of stabilizing, Taiwan’s export orders in petrochemical and base metal industries are expected to trend higher in September.

The MOEA said that export orders for September are expected to range from US$41.5 billion to US$43 billion, up about 4 percent from a year earlier.

Source: Focus Taiwan News Channel