Taiwanese Apple manufacturer Hon Hai Precision Industry (HNHAF) is considering a $40M investment in manufacturing facilities and automation R&D for high-end telecommunications products in Pennsylvania, The WSJ reports.
Sharp (SHCAY -1.3%) and Hon Hai Precision Industry (HNHAF) have scrapped plans to develop smartphones under the Sharp brand in China, in part due to intense competition from local handset manufacturers, The WSJ reports.
Foxconn parent Hon Hai (HNHAF.PK), which is believed to get 60%-70% of its revenue from Apple (AAPL +1.2%), reported a 19% Y/Y drop in calendar Q1 sales to $27B. KGI Securities: "A quarterly decline was expected, but not a yearly decline ... This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Nonetheless, Apple is following the tech sector higher, a possible sign a weak Q1 is priced in.
Six months later (original), RadioShack (RSH) formalizes the terms of its Asia joint-venture with Cybermart (HNHPF.PK). Cybermart will own 51% of the JV, which could see the retailers opening small-format stores in China, Taiwan, Hong Kong and Macau. RSH shares are -68.5% Y/Y, but +43.9% M/M - the start of a new uptrend, or an opportunity to dump shares.
Declining shipments from Taiwan-based notebook makers indicate tablets are impacting computer sales. The top-five notebook manufacturers saw combined shipments drop 4% sequentially in Q1 and Q2, and are expected to gain just slightly in Q3.