(Recasts, adds company comment, background)
* Q1 net profit hits $90.68 million
* Communication devices contribute 38 percent to qtrly
* Computing contributes 31 percent to qtrly revenue
By Michael Gold
TAIPEI, May 7 Taiwan's Pegatron Corp,
a major manufacturer of electronic goods for companies like
Apple Inc, will continue its shift into high-growth
devices like smartphones even as it stresses the importance of
the personal computer to its overall product mix.
The company, which industry watchers believe will be one of
the manufacturers of Apple's upcoming large-screen iPhone
alongside larger rival Hon Hai Precision Industry Co Ltd
, reported Wednesday that revenue from communication
devices grew 82 percent in the first quarter from a year
earlier, while revenue from computing contracted by 13 percent.
That led to communication devices contributing 38 percent to
overall quarterly revenue, compared to only 31 percent for
But it also predicted notebook shipment volume in the second
quarter to grow by up to 5 percent over the first quarter.
"The computer is changing, it's not disappearing," CEO Jason
Cheng said during the company's quarterly investor conference,
citing devices like the Chromebook from Google Inc as
a possible path for the personal computer's evolution.
Pegatron had previously reported a first-quarter net profit
of T$2.73 billion ($90.68 million), a increase of 18.5 percent
on-year, versus expectations of a 13 percent decline.
The figure lagged net profit of T$3.38 billion in the
Pegatron, which previously had predicted a turnaround in
persistently weak global PC sales, is adapting
to rapidly-changing consumer tastes in once-high-margin products
Researcher IDC projects smartphone sales growth to moderate
to 19 percent this year from 39 percent in 2013. It also said
worldwide PC shipments declined 4.4 percent in the first quarter
from a year earlier.
Apple said in April that sales of iPhones in the first
quarter beat expectations while investors await a new
game-changing product from the California-based innovation
($1 = 30.1045 Taiwan dollars)
(Reporting by Michael Gold)