Taiwanese investors are betting on increased shipments for electronics for the country's largest airline, China Airlines Ltd., as demand from Apple Inc. (AAPL) for Taiwanese iPhone parts surges ahead of the new phone's September release, according to Bloomberg.
Shares of Taiwan's largest airline increased 5% on Wednesday in Taipei and have jumped more than 30% in the last eight days, sending its market value up over $4.1 billion and helping it outperform any other stock in the MSCI Asian benchmark. The boost comes as prognosticators see Apple's newest rendition of its iPhone product sending demand for Taiwanese parts through the roof. China Airlines' cargo business will benefit from the increase in shipments.
"China Airlines is doing well in the cargo business, and with Apple introducing the new iPhone in September, there will be an uptick in demand for shipping electronics components," President Capital Management analyst Jin Chang told Bloomberg. Analysts are expecting the best quarterly profit for China Airlines since 2010.
Taiwan is home to many of Apple's main suppliers including Taiwan Semiconductor Manufacturing Co. (TSM) . Fellow cargo shipper Eva Airways has also jumped on iPhone expectations, up 34% since Aug. 10.
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