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Taiwan tech exports hit record high, rising 9.6pc not counting iPhone 6

TAIWAN's export growth doubled market expectations in August ahead of the launch of Apple Inc's newest smartphone packed with components made by the island's high-tech firms.

But some analysts feared for the fourth quarter, expecting plunging growth rates as the Apple effect wore off.

Overall, August exports were up 9.6 per cent year on year to US$28.1 billion, its second highest monthly score after a Reuters' poll of analysts predicted growth of 4.58 per cent.

August exports to China, Taiwan's largest export destination, increased 8.7 per cent year on year, outperforming July's 6.5 per cent increase.

Tech exports hit a monthly trade value high of $9.23 billion in August, according to Ministry of Finance data.

The figures come just hours ahead of the launch of Apple's new product offerings, including the much-anticipated iPhone 6, a new smartphone to be fitted with bigger, scratch resistant screens.

"Optimism around the iPhone 6 is running high given Apple's user loyalty and installed base of over 300 million iPhones, which could drive a big upgrade cycle," said HSBC analyst Steven Pelayo.

Taiwan's heavily trade-dependent economy has gained from improving US demand, especially manufacturers, a major part of the global high-tech supply chain.

Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chip manufacturer, to parts assemblers Hon Hai Precision Industry Co Ltd and Pegatron Corp and metal casings maker Catcher Technology Co Ltd, are among the big Apple suppliers.

Many firms receive their orders in Taiwan, but export via mainland China, where numerous Taiwanese factories are located.

For the month, Taiwan's imports also rose a strong 14.1 per cent from a year earlier, resulting in a trade surplus of $4.11 billion in August, finance ministry data showed.

Bank of America Merrill Lynch analysts said demand for semiconductors and camera lenses used in the iPhone6 should add two per cent to Taiwan's monthly exports for August, September and October.

Said Masterlink Securities economist Anita Hsu: "There's no driver out there that could exceed Apple's contribution. Considering this dependence, we wouldn't be surprised if export growth in the fourth quarter averaged below five per cent."