A report that Apple has ordered as many as 78 million of its upcoming updated iPhone models is boosting the share prices of the company’s Asian suppliers, including Hon Hai Precision Technology and Megatron.
The Taiwanese newspaper Economic Daily reported that Apple has told suppliers it will need 72 million to 78 million new iPhones—far more than most Wall Street analysts expected. Apple declined to comment.
Shares of Pegatron (PEGATRON), which assembles some iPhones, and Catcher Technology, which makes the outer aluminum shell for the phone, gained 10% on Monday trading in Taiwan, Barron’s reported. Hon Hai Precision, which does business as iPhone assembler Foxconn, gained 5%, and Taiwan Semiconductor Manufacturing (TSM), which makes computer chips for the iPhone, gained 4%.
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The report contradicts earlier news this month that suppliers had received weak orders for the upcoming iPhone, which many have dubbed the “iPhone 7” even though Apple has yet to say a word about it. The earlier reports hurt the share prices of suppliers
Apple shares (AAPL), which have dropped 10% in value so far this year, were up less than 1% to $95.75 in premarket trading on Monday.