13 Sep 2010

Rakon bullish on smartphone potential

10:31 am on 13 September 2010

The listed electronic components maker Rakon says there's huge potential in the smartphone market and wireless technology in the year ahead.

Rakon currently supplies components to some of the world's biggest smartphone manufacturers, including Blackberry make Research in Motion, and China's Foxconn, which makes Apple's iPhone and iPad.

Rakon's managing director, Brent Robinson, says the transmission of wireless data is expected to increase by nearly 4000% over the next four years, all of which will need Rakon's products.

Construction on a new factory in Chengdu, China, next door to Foxconn's factory, is currently under way to boost Rakon's production capacity enough to meet demand.

Despite the bullish outlook, Mr Robinson says investors, who have not been paid a dividend since the company listed five years ago, will have to wait at least another couple of years before they get one.

Rakon expects its full-year earnings this financial year to be within analysts' forecasts of between $25 million and $30 million.