Smart devices sought by Asia’s cargo carriers
Analysts have speculated that as China’s growth cools, cargo carriers will need U.S. and European consumers to scoop up these new models as transporting electronics is their biggest business.
September 12, 2013
Apple iPhones and Samsung Galaxy Gear watches are the gadgets that Asian freight airlines have been waiting for, according to analyst reports.
Analysts have speculated that as China’s growth cools, cargo carriers will need U.S. and European consumers to scoop up these new models as transporting electronics is their biggest business. Six of the world’s 10 largest freight airlines are in Asia, so a revival eases earnings pressure at companies such as Korean Air Lines, which moves Samsung’s phones, and Hong Kong-based Cathay Pacific.
It is possible, according to analyst reports, that Asian carriers, suffering from a traffic slump of six consecutive months, may be able to break the losing streak with the help of new devices. Samsung just unveiled its Galaxy Gear and Note 3 tablet and Apple plans to show its new iPhones next week, meaning a rush to deliver product from factories in Asia ahead of the Christmas shopping season.
“The market needs revolutionary products to generate constant demand,” said Park Eunkyung, a Samsung Securities analyst in Seoul was quoted as saying. “Whenever a new device is introduced, there’s always an increase in shipments for about 15 days to a month.”
Demand for gadgets is typically strong immediately after introduction, and companies rush to new markets using planes. Moving high-value goods such as smartphones and tablets by ships delays efforts to capture market share quickly.