Jarllytec, a Taiwan-based manufacturer of foldable phones and consumer electronics hinges, may expand its production capacity in China to meet rising demand from local handset customers, according to the company.
Chinese foldable mobile phone sales have been robust, according to Chang Tai-yuan, chairman of Jarllytec. The company anticipates being close to its clientele and is strategically determining its production capacity in light of this knowledge in 2024.
An increase in foldable phone hinge orders has boosted Jarllytec's sales performance in April 2023. The company reported that revenue climbed 17.1% year-on-year in 2023, with earnings in December alone increasing by more than 100% compared to the same period in 2022.
Jarllytec reported pre-tax profits of NT$65 million (US$2.1 million) in December, a 160% increase year-on-year, with net profits jumping 438% to NT$70 million.
According to Chang, foldable products are becoming increasingly popular. In addition to mobile phones, two to three distinct foldable product categories are expected to exist in 2024. Jarllytec will boost manufacturing to fulfill client demand and expects a double-digit revenue increase in 2024.
In response to the geopolitical dispute between China and the US, Jarllytec has established plants in Vietnam and Thailand, with mass production beginning in Thailand in the fourth quarter of 2023 and in Vietnam in the first quarter of 2024, Chang said.
Jarllytec currently serves Chinese mobile phone customers and provides hinges necessary for their foldable models. Customers have an exclusivity constraint, which means Jarllytec cannot accept orders from their Chinese counterparts. Thus, the company is also eyeing orders from US and other non-Chinese handset customers, according to market sources. Reportedly, Jarllytec is already a major supplier of hinges for Apple Mac computers.
Article translated by Jessie Shen
