Pegatron profits come in under expectation

<p>Profits at iPhone manufacturer Pegatron have failed to hit expectations.</p>

The share price of iPhone manufacturer Pegatron has fallen today (November 12th), after the company's latest financial results failed to meet analysts' expectations.

Slower orders for the new iPhone 5C – a budget counterpart to the iPhone 5S – have been blamed for the disappointing data released by the firm.

Net profits were revealed by the firm to be T$2.48 billion (£53 million) for its third quarter.

The firm, which also makes laptops for Lenovo, saw its share price rise to a new high in May, but today it dropped back by 3.35 per cent.

In contrast, Lenovo's stock recently soared after the company announced that its profits were 36 per cent up for the third quarter of the year compared to the same period in 2012.

A research note from Nomura downgraded Pegatron stock from "buy" to "neutral" recently and the bank said it saw "a lack of positive catalysts in the near term" for the company.

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