Acoustics supplier AAC posts record 2016 earnings amid rapid tech upgrade cycle
Shenzhen-based firm reports 30 per cent rise in 2016 net profit to 4b yuan
AAC Technologies Holdings, the world’s top supplier of miniature audio components used by Apple and major Chinese electronics brands, posted record-high net profit and revenue for last year amid a wave of faster technology upgrades in the competitive global smartphone market.
Shenzhen-based AAC, which is believed to be a major supplier for Apple’s upcoming iPhone 8 line, expects to further ride that wave this year as high-tier customers push major feature upgrades.
The company reported on Wednesday a 30 per cent rise in net profit last year to 4 billion yuan (US$579.9 million), up from 3.1 billion yuan in 2015, on the back of strong growth in its non-acoustic business that includes antennas, optical components and so-called haptics vibrators.
Haptics refers to the technology used on smartphones, smartwatches and tablets that enable a user to feel a tactile sensation, or vibration, when interacting with an application.
Total revenue increased 32 per cent to 15.5 billion yuan from 11.7 billion yuan a year earlier, marking the company’s seventh consecutive year of annual sales growth.
The figures exceeded projections of a 3.9 billion yuan net profit and revenue of 15 billion yuan, according to consensus market estimates from analysts polled by Bloomberg.