Report: Apple ramps iPhone7 numbers, suppliers soar

It’s like deja vu, all over again

Reports out of Taiwan contradict the gloom and doom coming from the media. Shuli Ren at Barron’s writes:

Taiwan’s Apple (AAPL) supply chain manufacturers soared, with the TAIEX Index closing 2.6% higher after media reports that Apple is asking its suppliers to prepare for much higher-than-expected iPhone 7 production for 2016.

Taiwan’s Economic Daily said Apple had asked its suppliers to produce 72 to 78 million new iPhones by the end of the year, the highest production target in about two years. The street had expected only 65 million iPhone 7s to be produced this year.

According to the Taiwan newspaper, Hon Hai Precision Technology (2317.Taiwan) will remain the key assembler for iPhone 7 and Pegatron Corp. (4938.Taiwan) will be involved in the assembly process too. Both companies will get more market share this year, as they participate in dual camera, glass casing components production in addition to being assemblers.

Pegatron soared 10% today, Catcher Technology (2474.Taiwan) jumped 9.9%, Hon Hai Precision gained 4.7%, Taiwan Semiconductor Manufacturing Corp. (2330.Taiwan/TSM) rose 3.8%, Largan Precision (3008.Taiwan) was up 2.6%. Year-to-date, the iShares MSCI Taiwan ETF (EWT) has dropped 1%.

As I stated yesterday, before heading out to have the roots of my molars planed by a vicious periodontist, I have heard the stories before. I still expect less than the usual stellar results this quarter, though pleasant surprises are never out of the question with this company. AAPL now at $98 after-hours. Dividend increases on the way. You will be throwing rose petals at my feet in 2017.