14 DAY TRIAL // Pegatron, a Taiwanese contract manufacturer of electronics, has been tapped by Apple to produce some of the “budget” iPhones expected to launch later this year, according to a new report.
Reuters has learned from Asian suppliers that Pegatron plans to increase its workforce by 40 percent in the second half of this year, in anticipation of iPhone orders from Apple.
Pegatron's Chief Financial Officer Charles Lin told the news agency that 60 percent of the company's 2013 revenue is expected to come from contracts scored for the second half of the year.
This, of course, has fueled speculation that Pegatron has scored a massive deal with Apple, the Cupertino, California-based tech giant which generally prefers Foxconn’s services for iPhone and iPad assembly.
The news also ties in with rumors that Foxconn itself is trying to relinquish some of its dependence on Apple.
However, while Foxconn employs around a million people, Pegatron currently staffs just 100,000 workers.
The aforementioned suppliers specifically said that “Apple is developing a cheaper model of the phone, broadening its sales base to lower-income buyers in growth markets such as China and India,” the report states.
A Japanese supplier chimed in to say that “small-scale production of the display panel for the model would begin in May, ramping up to mass production in June.”
Seemingly corroborating every rumor we’ve heard about this elusive “budget” iPhone from Apple, Reuters concludes that Apple will most likely introduce the device in the third quarter of 2013.
Fubon Securities analyst Arthur Liao is quoted as saying that, “Making the cheaper iPhone will further help Pegatron's operating margin because its plastic casing is easier to make than iPhone 5's metal casing; this should ensure a good yield rate.”
Pegatron has always been Apple’s second choice for producing its hot selling iDevices, but it appears their relationship stands to grow stronger, especially if rumors about Foxconn backing off turn out true.