Let's talk iphones. The iphone 5 display is made by Japan Display (who Nam Tai has the contract with), LG Display, and Sharp. There's also the iphone 4 and iphone 4S, which Japan Display/Nam Tai have nothing to do with, and account for about half of iphones sold. The iphone 5 display is also used in the ipod touch, which accounts for half of ipods sold. (37.4M + 5.6M)/2 = 21.5M iphone 5 displays this past quarter, or around 7M per manufacturer if they are split evenly. That's this quarter.
Looking forward to the future things get interesting. There's been a lot of talk of a cheaper iphone and that sounds probable to me, and most likely it would use the same display as the iphone 5S will for economies of scale and to make the resolution of apps consistent. The iphone 4 and 4S are old and small and are going to quickly become outdated next to the iphone 5S when it's released. They also use the older connector type, not the Lightning connector as newer Apple products use, and I'm sure Apple would like to finish getting standardized.
When the iphone 4 and 4S disappear, which is certain eventually regardless of whether the cheaper iphone comes about or not, Nam Tai will have a chance at doing LCMs for 1/3 of ALL iphones rather than just 1/3 of half. Also, if Apple does a cheaper iphone I think that will be part of a strategy for landing business on China Mobile, which is gigantic with more than 700M customers, as well as other developing-world customers. Total units sold would go up dramatically, and between the iphone 5S and the cheaper iphone production could triple compared with the iphone 5 alone.
Apple made it sound like new products won't come out until the fall -- September. It's possible that they don't consider a cheaper iphone or iphone 5S to be a "new product" or that they just want to keep the launches secret. We'll see.
Nam Tai's non-Apple business is likely to skyrocket in the second half, but Nam Tai's iphone business should also be fantastic.
The 4 and 4S are old by smartphone standards. Tim Cook just said these models are being used to bring a large number of new users in since they are now less expensive. This is the "new" inexpensive phone being sold in large volumes, making up a large percent of Q1 smartphone numbers.
The connector has to go. You can't plug it into anything new anymore (cars/entertainment devices etc). The screen size is an issue with the apps. Having different size screens adds to the cost. And the packaging of the 4 and 4s is very very expensive. That packaging needs to go. They will keep the iphone 5 screen to save face and for those that want a smaller screen, they will pring out a 4.8" + screen soon. They have too. Everybody is demanding it. The 3.5 inch screen will probably be dropped.
Don't mistake the cost of the phone being lower (becasue people don't want it) to it being a lower cost phone. They need to lower costs. iPhone 4/4s is not low cost. The lower price just hits them in their margins.
It is great to see a message board that has good information being passed on to all, and it is especially refreshing that there are no politics discussed here, what a novel approach.
NTE has been in my holdings going back 6-7 years, got out during the down years but then came back in early 2012. Based on everything I have read, heard on the conference calls, and most of all, seeing the actual quarterly results, NTE is proving to all investors, they are delivering on their goals. They have a very good and strong management team.