Although Lotes was removed from the latest Apple supplier list, the company is expected to see growth momentum in 2024 thanks to new server, desktop, and notebook launches that will benefit its business. Lotes is also anticipated to have higher profit growth compared to sales growth.
On April 22, Apple published the latest supplier list for fiscal 2023, representing 98% of direct spending for materials, manufacturing, and assembly of Apple products worldwide for fiscal 2023 (October 2022 to September 2023). Lotes, a Taiwan-based supplier of processor sockets, connectors, switches, etc., did not make the list for fiscal 2023.
It is believed that Lotes' removal may be due to Apple's increasing adoption of in-house chips. Lotes did not respond to DIGITIMES's question.
Lotes indicated at the latest earnings call that their growth in 2024 would mainly come from new servers, desktops, and notebook models. With an expected increase in shipments of these new launches, the company anticipated better performance in the latter part of the year and is likely to see double-digit revenue growth for 2024.
Sources told DIGITIMES that Lotus's growth in 2024 will mainly focus on server connectors. The increased pin count of Intel's new products is expected to contribute to Lotes' revenue this year. Additionally, revenue prospects for desktops are expected to remain flat or grow slightly. For notebooks, revenue is expected to grow due to the increased penetration rates of SO-DIMM DDR 5 and PCIe 5.0.
As water cooling has become trending recently, Lotes' Universal Quick Disconnector (UQD) for water-cooled server racks may become a new profit driver after 2025. LPCAMM (Low Power Compression Attached Memory Module), which will be more widely adopted in AI NB, is also expected to play a role in their growth.
