07.11.2001
Adapter recall for Apple G3 NB

• Development: Yesterday afternoon Delta reported that only a small number of the problematic NB adapters (total of 570k units) were produced by Delta Thailand (Delta TB).

• Analysis: If we assume that Delta Thailand was responsible for 50% of the recall charges, the loss for Delta Taiwan through equity method of 20% would amount to only NT$11.4m.

• Primasia View: We regard yesterday’s downward share price movement as an overreaction from overall weak market confidence. Nonetheless, we believe Delta is attractive at this level.

VincentChen@Primasia.com +886-[0]2-2547-8868