Reiterate BUY. We think FIH has kept its solid position in Xiaomi’s projects. We fine tune estimates and TP to reflectsmartphone demand uncertainties. 1H results out mid-Aug.
Street doesn’t think FIH can have iPhone 6 but we believe the progress is on track to kick in late-2H. Contribution isinsignificant but a milestone for further diversification.
FIH is not the technology leader but a low-cost expert. Smartphone commoditization trend is a long-term tailwind on the reference from previous feature phone cycle