Expect a record breaking 4th quarter, more to come
NTE is on track to hit record sales and profits this fourth quarter. Last summer, one prominent analyst called for 45 million unit sales for the 4th quarter, last week, he reduced his estimates to 40 million, stating he saw weakness in the supply chain???. Apple has made it clear that they have targeted a production goal of 18 million units per month or 50 million units per quarter.
NTE is contracted to make up to a max of 4.0 million displays per month. NTE is one of three suppliers of displays to the I Phone. According to NTE Chairman Koo’s last comments during the conference call, NTE in the 4th quarter will be producing at 84% of the contracted volume of 4.0 M capacity level. This is a far higher level than last quarter as I Phone production was just started and we only had two months of low production for sales. Now we are producing at a very high rate for the 4th quarter.
NTE will not be affected by any reduced volumes at Apple in I Phone retail sales, NTE is just getting started and have been rewarded by their customer for achieving excellent quality performance, this is very important for any consumer electronics supplier. If anything, NTE production could be going higher.
I am sticking with my estimates for the 4th quarter. I do expect an announcement by NTE about some new supply contract that may have been signed, maybe with current customers, or better yet, with a new Smartphone manufacturer.