Two smartphone component makers have quietly been leading the charge of the MSCI Asia Pacific Infotech index. This strongest performing sub-index beats out the number two sector, industrials, by almost 7%
As Tim Culpan writes Monday for Bloomberg, Chinese Sunny Optical Technology Group Co and South Korean LG Innotek Co have both seen gains of more than 68% year to date. Samsung Electro-Mechanics Co and Samsung SDI Co have also joined the party.
LG Innotek is expected to supply parts to Apple’s upcoming iPhone 8, and, as Culpan points out, while the overall smartphone market is facing a slowdown, suppliers of high-end devices can rely on a consumer segment that is willing to pay a premium.