When it comes to supply chain companies in the tech device world, sometimes one big deal is all it takes to move to the next level. A contract with a top company, such as Google Inc (NASDAQ:GOOG) or Amazon.com, Inc. (NASDAQ:AMZN) is a very big deal. This is particularly true in today’s day and age with these tech companies growing at a rapid pace and always looking for a way to outdo its competitors;continue reading here for more info.
Wintek Corporation (TPE:2384), which also trades on the Taiwan Stock Exchange,is one of those supply chain companies that is going to benefit big time from its business with Google and Amazon.com, Inc. (NASDAQ:AMZN).The touch panel maker is known as one of the best in the world, and according to Digitimes the company is expected to reach revenue of nearly $268 million during the third quarter of 2013; this is due in large part to its business with Google Inc (NASDAQ:GOOG) and Amazon.
Established in the early nineties, Wintek has become a global company with offices in three continents and component manufacturing facilities in China, Taiwan, India and Vietnam. If you’ve heard of this company prior to reading this article, chances are you’ve read about Wintek Corporation (TPE:2384)’s 2010-era troubles with Apple Inc. (NASDAQ:AAPL) iPhone screens and the toxic chemical n-hexane, which has been shown to cause nerve damage and paralysis in extreme circumstances.
It should be stressed that Apple was never shown to be responsible for the usage of n-hexane, and with these troubles largely behind it, investors can focus on Wintek’s rosy prospects.
Like many bull cases for tech suppliers, the key thesis behind Wintek lies in its sheer volume; the aforementioned Digitimes report discussed this extensively:
“Wintek has reportedly begun shipping touch panels for Google’s next generation Nexus 7 as well as Amazon’s 7-inch Kindle Fire HD as of June 2013 and will continue doing so throughout July and August when Wintek’s’ shipments are expected to peak, said the sources.”
The outlet also added that “touch panel shipments for the Google Inc (NASDAQ:GOOG) Nexus 7 are expected to be around 500,000 units a month as of July,” and that“monthly touch panel shipments for the Kindle Fire will be around 300,000-400,000” in Q3 of this year and “a total of about 6-7 million units in 2013.”
Regarding Apple Inc. (NASDAQ:AAPL), while the tech giant was less reliant on Wintek Corporation (TPE:2384) for its last iPhone than previous iterations of the smartphone, the supplier may play a significant role in the next generation iPad Mini. According to Grand Cathay Securities analyst Mars Hsu, “Touch panels for notebook computer production account for about 50 percent of Wintek’s total sales,”and although there are mixed reports that Apple is being phased out, the next iPad Mini represents another possible boost.