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Jan. 31 (Bloomberg) -- Foxconn Technology Co. climbed to the highest in more than five months in Taipei trading on speculation Apple Inc. may use metal casings for its next generation iPhone, benefiting the Taiwanese company.
The stock jumped as much as 6.9 percent to NT$116 as of 11:16 a.m. local time, the highest intraday level since Aug. 16. The benchmark Taiex index rose 0.6 percent.
The Cupertino, California-based company is considering new casing materials for the iPhone, its best-selling product, Morgan Stanley analyst Katy Huberty said in a report this month. Apple currently uses a glass casing for its iPhone.
“There’s talk that Apple is going to use metal for its new iPhone, so this will benefit companies like Foxconn,” said Dennis Chan, an analyst at Yuanta Securities Co. in Taipei. “That’s why it’s surging.”
Cheng-Kuang Liu, spokesman for Taipei-based Foxconn Technology, declined to comment on the speculation.
Apple and its supply chain are “surprised by the demand for the iPhone 4S, which increases confidence in strong sales for iPhone 5 later this year,” Huberty said in the report.
The U.S. company sold 37 million iPhones in the period ended Dec. 31, with customers snapping up the new 4S model that went on sale in October.
Apple’s fiscal first-quarter profit more than doubled to $13.1 billion as revenue rose 73 percent to $46.3 billion, the company reported Jan. 24.
--Editors: Garry Smith, Suresh Seshadri
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