Taipei: Largan Precision Co., a key supplier of smartphone camera lenses to Apple Inc., reported its second-highest sales ever in 2024, marking a more than 20 percent increase compared to the previous year. This growth is attributed to a revival in global demand for consumer electronic gadgets.
According to Focus Taiwan, Largan announced that its consolidated sales for 2024 surged by 22 percent year-on-year, reaching NT$59.46 billion (US$1.81 billion). This figure is only surpassed by the NT$60.75 billion recorded in 2019. In the fourth quarter of 2024, the company's consolidated sales hit NT$18.2 billion, which is a 2 percent rise from the same period last year, although it represents a 4 percent decline from the previous quarter.
In December, Largan's sales amounted to NT$5.64 billion, showing an 18 percent increase from the previous year but a 6 percent decrease from November. The company highlighted that its higher profit margin lenses, specifically the 20 mega-pixel and above category, contributed 20-30 percent to total sales in December. Meanwhile, 10-20 mega-pixel lenses accounted for 60-70 percent, 8 mega-pixel lenses represented less than 10 percent, and other lenses made up 10-20 percent of the sales.
The company anticipates that seasonal slowdowns in the first quarter may affect its revenue momentum in January, potentially leading to a decrease in sales compared to December. Largan has scheduled an investor conference on January 9 to discuss its fourth-quarter results and provide guidance for the first quarter.
Market analysts have observed that with the rollout of the iPhone 16's Apple Intelligence function in several countries, expected expansion into markets like Taiwan, China, Japan, Spain, and France in 2025 could boost iPhone shipments. As a critical supplier to Apple, Largan is likely to benefit from this trend. Additionally, China's recent announcement of subsidies for purchases of handheld devices, including smartphones and tablets, may further benefit Largan due to its relationships with several major Chinese smartphone brands.