Strong demand for Apple products boosts Foxconn and Pegatron’s earnings

By Christian Zibreg on Mar 28, 2014

Demand for Apple’s latest products is as strong as ever, it would seem. After reporting sales of 51 million iPhones and 26 million iPads during the lucrative holiday quarter, as a result Apple’s key contract manufacturers – Foxconn and Pegatron – are seeing a nice rise in their earnings, too.

Pegatron, the primary manufacturer of the iPhone 5c and iPad mini, last week reported a cool 22 percent annual rise in earnings attributed to strong demand for mobile products. Apple is responsible for as much as 40 percent of Pegatron’s business so the manufacturer’s fortunes are closely tied to the iPhone maker’s.

As for Foxconn, they reported a 13 percent rise in net profit today. Foxconn is the world’s top contract manufacturer and Apple’s lead supplier… Read More

 

Rumor: Pegatron to start assembly of large-screened iPhones and iPad Airs this Fall

By Christian Zibreg on Mar 24, 2014

The Commercial Times newspaper reported last week that Apple’s contract manufacturer Pegatron is gearing up to kick off mass production of the iPhone 6 in the second quarter of this year at its China-based plant in Kunshan.

On Monday, The China Times newspaper claimed new information saying that Pegatron has landed orders for both large-sized iPhones and iPad Airs.

However, contrary to The Commercial Times story, Pegatron is actually said to start the operation of the Kunshan plant, which is located in China’s Jiangsu Province, in the third quarter of this year.

That facility will be solely dedicated to churning out Apple products. For reference, Pegatron is the primary manufacturer of the iPhone 5c and iPad mini… Read More

 

Pegatron reportedly gearing up to start iPhone 6 production in Q2

By Cody Lee on Mar 18, 2014

According to a new report from the Commercial Times, Apple supplier Pegatron is gearing up to start mass-producing the iPhone 6. The production is expected to kick off in the second quarter of this year at its Kunshan, China-based plant.

The newspaper says that the manufacturer has already begun recruiting workers in China, and has even opened up a new factory space, in an effort to prepare for large orders from Apple. The new handset is expected to debut later this year… Read More

 

Pegatron expected to land half of Apple’s iPhone 6 orders

By Cody Lee on Jan 9, 2014

For it only being January, there sure has been a lot of information tossed about regarding the next-gen iPhone. Insiders claim to know what size the display will be, what kind of camera it’ll have, and even who is going to make it.

A new report out of Taiwan this afternoon is claiming that Pegatron will likely be tapped to manufacture half of Apple’s [so-called] iPhone 6 orders—a huge win for the Taiwanese supplier, who currently assembles the iPhone 5c… Read More

 

Apple supplier Pegatron using facial recognition to scan for underage workers

By Cody Lee on Dec 16, 2013

Following the death of a 15 year-old factory worker, The Wall Street Journal is reporting that Pegatron is using facial recognition technology to screen applicants for its iPhone plant. Pegatron manufactures the iPhone 5c and other products for Apple.

The company is using the tech to match real faces with those on government-issued IDs. This form of authentication helps to weed out those with borrowed or forged IDs, which is believed to be how the 15 year-old was able to get past initial screening…

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Apple comments on death of 15 year-old Pegatron factory worker

By Cody Lee on Dec 12, 2013

Apple and its Asian supplier Pegatron, which manufactures the iPhone 5c, have come under heavy fire this week following the unexplained deaths of at least five factory workers. Even worse is that one of them, a boy, was just 15 years old.

It’s since been determined that the teenager used forged identity documents saying he was 20 years old to get the job. And today, Apple gave an official statement on the incident, saying it has sent independent medical experts to investigate…

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Why would Apple cut iPhone 5c production down?

By Sébastien Page on Oct 16, 2013

That is twice in two weeks that we hear Apple has asked suppliers in China to cut down on production of the iPhone 5c. Although the first report from Chinese website C Technology came more as a rumor than an actual fact, today’s WSJ report that echoes the same information definitely gives more credence to the claim.

This is the ideal news for Apple naysayers, downers, and other AAPL bears. Clearly, if Apple is cutting down orders on the iPhone 5c, then it must mean the device isn’t selling as well as expected. But is that really the truth? Read More

 

WSJ: Apple cutting iPhone 5c production, increasing 5s orders

By Cody Lee on Oct 16, 2013

Apple has asked its iPhone suppliers in China to cut down on production of its iPhone 5c model, according to a new report by The Wall Street Journal. This is the second time we’ve heard this in as many weeks.

Last week, it was reported by Chinese web site C Technology that Apple had cut their iPhone 5c orders in half—from 300K units per day, to 150K—spawning speculation that the device isn’t selling very well… Read More

 

New photo shows iPhone 5C units in QA testing at Pegatron

By Cody Lee on Aug 24, 2013

A new photo surfaced earlier today, claiming to show a dozen or so iPhone 5C units in testing. Apple, like all electronics companies, requires its manufacturers to test small batches of its products for quality assurance purposes.

But between the company’s notorious demand for secrecy, and the inability to confirm these are actually iPhones, we figured the handsets in the photo were more than likely knockoffs. But it turns out, they may be the real deal… Read More

 

Apple allegedly shifting iMac production from Quanta to Pegatron

By Christian Zibreg on Aug 5, 2013

If a new report by the somewhat reliable DigiTimes is to be taken at face value, then Apple may shift production of its all-in-one iMac desktop from the current manufacturer Quanta to Pegatron. Now, Pegatron already builds older iPhones, has reportedly been commissioned to build Apple’s rumored plastic iPhone and used to make iMacs.

Nowadays most iMac orders are being fulfilled by Quanta, which also assembles the majority of MacBook Air and MacBook Pro notebooks… Read More

 

Pegatron investigation seemingly confirms plastic iPhone

By Christian Zibreg on Jul 29, 2013

The Wall Street Journal yesterday shared a report by New York-based China Labor Watch which had counted 86 labor rights violations in three manufacturing facilities operated by Pegatron, Apple’s contract manufacturer which assembles older iPhone 4 and 4S models.

It hasn’t escaped the attention of eagle-eyed bloggers that the working conditions report also mentions an alleged less-pricey iPhone through the mouth of one of the interviewed workers tasked with assembling Apple’s rumored device at Pegatron’s Shanghai plant.

As you know, the rumor-mill, pundits and big media alike are widely expecting the budget iPhone to feature a less-pricey polycarbonate body… Read More

 

Apple investigating claims of ‘serious’ labor rights violations at Pegatron

By Cody Lee on Jul 29, 2013

New York-based China Labor Watch has accused Apple manufacturing partner Pegatron of ‘serious’ labor violations this morning. In a new report out today, the organization claims the device-maker is committing of 86 labor rights violations in three of its factories.

Among the infractions listed in the filing are the employment of underage workers, insufficient employee wages, and poor working conditions. In all, the watchdog group says that it found Pegatron to be guilty of 36 legal infringements and 50 ethical infringements… Read More

 

Foxconn to exclusively manufacture Apple’s iPad mini 2, rumor has it

By Christian Zibreg on Jul 23, 2013

As we sift through Apple’s June quarter numbers and decipher vague hints suggesting a blockbuster Fall, rumors of a next-generation iPad mini continue to swirl. And where DigiTimes sees a Retina iPad mini in October, KGI’s Ming-Chi Kuo sees a launch in March or April of 2014 given the battery and performance challenges stemming from driving a much smaller, thinner and lighter Retina display.

A pair of recent supply chain reports points to Apple commissioning Taiwan’s Hon Hai Precision Industry Co. (aka Foxcon) with assembly of the second-generation iPad mini. The company is additionally said to have included new suppliers in the iPad supply chain… Read More

 

Pegatron CEO says Apple’s budget iPhone won’t be ‘cheap’

By Cody Lee on Jun 20, 2013

Speaking at his company’s shareholders meeting on Thursday, Pegatron CEO T.H. Tung made some interesting comments on Apple’s often rumored ‘budget iPhone.’ He said don’t expect the handset to be inexpensive, as the “price [on it] is still high.”

For those unfamiliar with Pegatron, it’s a manufacturing company and one of Foxconn’s biggest rivals. The CEO’s comments seem to confirm earlier reports that Apple has chosen the company, over Foxconn, as its primary budget iPhone maker… Read More

 

WSJ: Foxconn rival Pegatron is primary budget iPhone manufacturer

By Christian Zibreg on May 29, 2013

We first heard from The New York Times that the world’s top contract manufacturer Foxconn is looking past the iPhone amid Apple’s slowing growth. Reuters previously ran an anti-Apple piece which asserted that Tim Cook & Co. are looking to shift from Foxconn to rival Pegatron, which currently builds the older iPhone 4/4S models.

On Monday, The Wall Street Journal ran a story claiming Foxconn is looking to manufacture, market and sell its own mobile accessories compatible with iOS devices. Moreover, the story goes, Foxconn is said to be expanding its high-margin retail operations and investing in content and services.

Today, the Rupert Murdoch-owned newspaper sheds more light on the subject, claiming Cook has re-shuffled Apple’s supply chain and re-iterating that Pegatron will be the “primary assembler” of Apple’s rumored low-cost iPhone, which the Journal expects to be offered “later this year”Read More

 

Apple said to move from Foxconn to Pegatron

By Christian Zibreg on May 13, 2013

Hon Hai Precision Industry aka Foxconn, Apple’s contract manufacturer of choice and the world’s largest product assembler, is under threat to losing orders to rival Pegatron, which has been building older Apple products Like the iPhone 4S and 4.

According to a new Reuters report, Pegatron “wants to grab more orders to assemble the fast-selling iPhone and iPad.” And in order to achieve this self-imposed goal, the Taiwanese manufacturer, which also builds the iPad mini, is reportedly ready to offer “more competitive pricing,” even if it has to sacrifice its margins. The news gathering organization reports that Pegatron “appears to be succeeding” in pulling in more orders from Apple… Read More

 

Pegatron CEO: Bloomberg is lying about ‘falling iPad mini demand’

By Christian Zibreg on May 9, 2013

The credulous Bloomberg yesterday covered Pegatron’s investor conference where the contract manufacturer announced a whopping 80 percent year-over-year growth in first-quarter profits.

Pegatron also cautioned investors that second-quarter revenue may drop between 20 and 30 percent amid the broader decline in consumer electronics demand.

However, writer Tim Culpan decided the story wasn’t newsworthy enough in and of itself. And in his quest for pageviews, the reporter reckoned he better run the piece under the more Apple’s doomsday headline, “Falling iPad mini demand to push Pegatron electronics sales down.”

Well, guess what? 24 hours later, Pegatron CEO steps forward and tells the media that Culpan put those words in his mouth and completely fabricated the ‘falling iPad mini demand’ part. And there goes Bloomberg’s credibility right down the drain… Read More

 

Pegatron ramping up hiring for budget iPhone production?

By Christian Zibreg on May 9, 2013

Just a day after contract manufacturer Pegatron warned investors its second-quarter earnings could drop up to 30 percent due to softening demand for iPad mini, other tablets, e-books and games consoles comes word that the company has ramped up hiring as it needs an additional 40,000 workers on top of its existing 100,000 employees.

The 40,000 additional workers are needed to presumably assemble a rumored less-price iPhone model for Apple, Reuters speculated Thursday, reiterating it heard from suppliers that Apple is indeed “developing a cheaper model of the phone” in order to broaden its sales base to lower-income buyers in growth markets such as China and India… Read More

 

Pegatron sees softening iPad mini orders

By Christian Zibreg on May 8, 2013

In another sign of consumers postponing purchasing iPad minis in anticipation of a second-generation model, said to sport Apple’s high-resolution Retina display, contract manufacturer Pegatron has cautioned investors Wednesday to brace themselves for as much as a 30 percent revenue decline when it reports second-quarter earnings, the most since a 37 percent decline in the fourth quarter of 2011.

Although Pegatron assembles Apples’ iPhone 4S and iPad mini, the Taiwanese corporation also acts as a contract manufacturer for consumer electronics from other makers. But as Apple is one of its principal clients – and given Apple’s high-volume needs – Pegatron attributed the decline to shrinking iPad mini orders… Read More

 

It’s not just iPhone 5S: budget iPhone also could come in colors

By Christian Zibreg on Mar 4, 2013

If the latest chatter coming out of Apple’s Asian supply chain is to be trusted, Taiwanese contract electronics manufacturer Pegatron – which produces some Apple products alongside primary gadget builder Foxconn – has been commissioned to build a rumored less-pricey iPhone that the Wall Street Journal, Bloomberg, Reuters and other high-profile publications previously reported on as a done deal.

It’s been thought the device has a hybrid plastic/metal design, with the polycarbonate part of its body being similar to what Apple used on the now discontinued white plastic MacBook. And now, latest reports add colors to the mix… Read More

 
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