components

Component orders by Apple for the iPhone 6 are a significant factor in the current thriving state of a number of Asian economies, say analysts and government officials cited by the WSJ.

Analysts expect companies from Taiwan, Japan and South Korea that supplied earlier versions of the iPhone to produce key components like displays, camera lenses and microprocessors. Already, some of those companies are announcing increased earnings or forecasts, and economists and analysts are talking about an Apple effect on whole sectors and economies …

A government official in Japan estimated that component orders for the iPhone 6 could boost quarterly demand for the country’s electronics exports “by 5 percent.” Taiwan’s industrial production in June was up 8.6 percent year-on-year, a rise some analysts attribute to supplies to Apple.

“The jump of the output of semiconductors is 100% related to the iPhone launch,” said Masterlink Investment Advisory economist Anita Hsu.

It’s been reported that Apple has placed orders for a record number of iPhones for production this year, the WSJ suggesting 70-80M units by the end of the year, in contrast to 50-60M for the iPhone 5s and 5c combined last year.

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