Taipei-Hon Hai Precision Industry Co., the world's largest contract electronics maker, ranked as the second-largest smartphone assembler in the global market in the third quarter of this year, according to a report released Tuesday by the market information advisory firm International Data Corp. (IDC).
The IDC said the position of Hon Hai, which is believed to serve as the sole assembler of the premium 5.8-inch iPhone X for Apple Inc., was unchanged from a quarter earlier.
Market analysts said Hon Hai is expected to get a boost from shipments of the iPhone X, which has seen solid global demand due to a significant specification upgrade, including 3-D facial recognition technology.
Apple unveiled three iPhone models, including the iPhone X, in September with the signature model's global sale kicking off in early November. With technological bottlenecks resolved, Hon Hai is speeding up the pace of delivery of the iPhone X to meet demand, according to a recent research note released by Taipei-based KGI Securities.
Another Taiwanese contract electronics maker, Pegatron Corp., which is said to share orders with Hon Hai in rolling out the smaller 5.5-inch iPhone 8 Plus and 4.7-inch iPhone 8, took fifth place in the rankings during the July-September period, up one notch from a quarter earlier, the IDC said.
Inventec Corp., a Taiwanese contract notebook computer maker, fell one notch from a quarter earlier to sixth place in the third- quarter smartphone assembly rankings, the IDC said.
The IDC said the change in rankings resulted from the launch of new models from international and Chinese brands such as Apple, Xiaomi and Lenovo Group.
According to the rankings, Samsung Electronics Co. of South Korea retained its title as the largest smartphone assembler in the world, ahead of Hon Hai and China's Oppo, which was unchanged in third position.
Vivo Communication Technology Co. came in fourth, followed by Pagatron (No. 5), Inventec (No. 6), Huaqin Telecom Technology Co. of China (No. 7), LG Electronics Inc. of South Korea (No. 8), U.S.-based Flextronics International Ltd. (No. 9), and China's ZTE Corp. (No. 10).
According to the IDC, due to an increase in production costs and the need to adjust inventories, smartphone production worldwide rose only 2.1 percent from a year earlier and gained only 6 percent from a quarter earlier.
The IDC said that on expectations of the launch of new models with advanced specifications in screens in mid-2018, many consumers may put their purchase plans on hold, so the advisory firm said it is cautious about smartphone shipments for the fourth quarter of this year.
Source: Overseas Community Affairs Council