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Brian White's Apple Monitor Continues To Outperform A Slow Taiwanese Environment

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  • Apple Inc.(NASDAQ: AAPL) shares have lost 8 percent since May 11, and are down 4 percent over the last 5 trading days.
  • Drexel Hamilton’s Brian J. White mentioned that all monitors reflected weaker-than-average-seasonality October sales.
  • Only the Apple Monitor reflected a better-than-seasonal performance in October, White commented.

Analyst Brian White said that all three Monitors, namely the Taiwan ODM, PCB and Component Monitors, indicated that October sales were weaker than average seasonality in the past. He added, “Yesterday, we highlighted stronger than seasonal performance from our Apple Monitor and slightly weaker than seasonal performance for our LCD Monitor.”

Within Drexel Hamilton’s Taiwan Monitor universe, only the Apple Monitor delivered October results that were ahead of average seasonal performance. White believes that Apple is among the “most undervalued technology stocks” and is poised for a record holiday season this year.

ODM Monitor sales declined 12 percent m/m in in October and were weaker than the average 3 percent m/m growth in the month, over the past ten years.

“We believe the stronger than seasonal September ramp took away sales from October. We use our ODM Monitor to highlight trends in the notebook market, along with mobile devices and other consumer electronics areas,” White wrote.

PCB Monitor sales declined 2 percent m/m in October and were softer than the average 3 percent m/m growth in the month, over the past ten years. Component Monitor sales were essentially flat, falling short of the 1 percent m/m growth in the month, over the past ten years.

On the other hand, Apple Monitor sales climbed 9 percent m/m in October and were stronger than the average 6 percent m/m growth in the month, over the past nine years. Moreover, Apple manufacturing partner Pegatron reported 6 percent sales growth m/m.

Apple manufacturing partner Hon Hai Precision reported 9 percent sales growth. Although this was below the average 12 percent m/m growth over the past ten years; September sales had jumped 57 percent and more than double the 22 percent average over the past ten years.

October sales for Drexel Hamilton’s Taiwan LCD Panel Monitor declined 5.4 percent m/m and were marginally softer than the average 4.7 percent m/m decline for the month of October over the past nine years. “We remain cautious on our LCD universe that includes AUO, LG Display and Corning,” White added.

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Posted-In: Brian J. White Drexel HamiltonAnalyst Color Emerging Markets Markets Analyst Ratings Movers


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