Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., announced Wednesday that its sales for December 2021 hit an 11-month high, up more than 3 percent over November, with market analysts attributing the growth to buyers building up inventories to meet year-end demand.
In a statement, Largan said it posted NT$4.502 billion (US$163 million) in consolidated sales for December, up 3.4 percent from a month earlier but down 8.3 percent compared with December 2020.
The December figure was the highest monthly total since January 2021, when Largan's sales stood at NT$4.607 billion.
In the fourth quarter of last year, Largan's consolidated sales totaled NT$13.052 billion, up 9 percent from the third quarter of 2021 but down 15 percent compared with 2020's fourth quarter.
Largan's consolidated sales for the whole of 2021 reached NT$46.96 billion, down 16.06 percent compared with 2020, with analysts blaming the decline on global supply chain disruption and falling demand for high-end camera lenses.
In December alone, lenses with a resolution of 20 megapixels or more -- a higher-margin product and one of Largan's specialties -- accounted for 10-20 percent of the firm's total sales.
Lenses with 10-20 megapixels accounted for 50-60 percent of the company's sales, with 8-10 megapixel lenses making up about 10 percent and other products such as voice coil motors contributing 20-30 percent.
Looking ahead, Largan said it was possible the company could post lower sales in January as they enter what has traditionally been a slow season for the industry.
Largan has scheduled an investor conference for Jan. 13, where CEO Adam Lin (???) will detail the fourth quarter results and give guidance for the first quarter of 2022.
Source: Focus Taiwan News Channel