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Pegatron Giving Apple Investors A Second Heads Up In A Row

This article is more than 7 years old.

Lost in the constant barrage of negativity one hears almost daily on Apple and most other companies in techland was a very important datapoint from key supplier Pegatron that was almost completely ignored last week.

Pegatron chairman Tung Tzu-hsien said last week that demand for the iPhone 7 was better than expected and stated as follows: "Consumers do not care about what analysts say about the lack of innovative features," Tung said of the iPhone 7 range.

He added that he was "cautiously optimistic" on iPhone sales although he did not discuss shipment details.

Earlier this month, both Pegatron and the larger Foxconn both reported consolidated sales for the month of August that were up sequentially and also year-on-year, ahead of the iPhone 7 launch.

September sales numbers for the two giant Apple OEMs will be released early in October which should provide further validation for Tzu-hsien's cautious optimism regarding iPhone 7 and iPhone 7 sales.

Pegatron and Foxconn share orders for the smaller iPhone 7 while Foxconn gets the bulk of the iPhone 7 Plus business.

Investors should also remember that despite the seemingly downbeat GfK nonsense, Apple itself said  that the iPhone 7 was globally sold out opening weekend. I am assuming that GfK would know that globally would include the countries in Europe as well as the countries in Asia they talked about in their report.

In summation, before getting completely caught up in the constant litany of negative newsflow regarding the Apple supply chain and the famous sellside "channel checks", it might do all us shareholders a bit of good to see the other side of the coin as well.

Something to think about.

(Long aapl, long aapl options)

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