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Tue, 29 May 2007 Apple books Quanta for 2G iPhone

Apple books Quanta for second generation iPhone, reports claim

Dan Nystedt

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Shares of Taiwan's Quanta Computer soared early Tuesday after the island's two largest financial daily newspapers said the company had won orders for Apple's iPhone.

Quanta, the world's largest contract laptop PC manufacturer, will start making iPhones in September on an initial run of five million second-generation iPhone handsets, the Chinese-language Commercial Times and Economic Daily News both reported on Tuesday, without citing sources.

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Apple is scheduled to take delivery of the new handset starting in September, ad the second-generation device will reportedly offer "a different outer design to fit different markets," a report claims.

In a statement, Quanta said that while it is taking measures to win new orders and increase business, it declined to comment on the reports because agreements with customers are confidential.

A source at Quanta said the company has not won orders for the iPhone yet, but that the company is vigorously competing for such orders.

Investors in Taiwan piled into Quanta stock early in the day, sending shares up to NT$51.8 each at the open. But the price drifted lower throughout the day as investment banks and analysts speculated on whether or not the newspaper reports were accurate. The ticker ended the day at NT$50.8, up just NT$0.2.

Speculation around the issue and the fact that it would move stocks so much show how much excitement there is about the upcoming Apple product. Despite some complaints such as the high price for the handset and having only one option for mobile phone service, Cingular Wireless/AT&T Wireless, many expect it to be a hit. The iPhone debuts in June.

Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, is believed to be the main manufacturer for the iPhone. The company does not comment on customer orders.

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