Pegatron's Plans to Boost Workforce by 40%, Fueling Lower-Cost iPhone Speculation
Just a day after reporting that its consumer electronics revenue would drop more than expected in the second quarter, perhaps due to weakening iPad mini demand, Apple manufacturing partner Pegatron has announced that it will boost its workforce by 40% in the second half of the year. The significant increase is fueling ongoing rumors of a lower-cost iPhone, as the firm has been reported to be handling production of the device.
Pegatron's Chief Financial Officer Charles Lin told Reuters on Thursday that 60 percent of the company's 2013 revenue would come from the second half.
He declined to comment whether the cheaper iPhone was among the new products to be made in the second half.
Pegatron is a longtime manufacturing partner for Apple, currently handling the iPhone 4S and iPad mini, although the majority of Apple's iOS device assembly is handled by the larger Foxconn. Pegatron currently employs 100,000 workers in its facilities, with yesterday's report indicating that the iPhone 4S and iPad mini each account for more than half of Pegatron's revenue for its communications and consumer electronics divisions respectively.
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Megatron: "Do as I command and we will defeat the Autobots once and for all!"
Negatron: "No, not gonna work."
Megatron: "Gaw come on, what did we talk about!"
Negatron: "Autobots always win. You think Optimus Prime is gonna be dead dead, but then he's not dead."
Megatron: "I'm taking this from a robot that turns into a canoe?!"
Negatron: "When there's a battle on a gently moving river, you'll want me."
In context of course, Foxconn announced its own hiring blitz recently. TSMC reportedly now makes the processors. That's three data points. I suspect Apple's been planning this for a while, when you bring in a fourth data point -- record cap expenditure for last two years.
With Samsung out the game and Google reduced to its true status as an iOS user data hijacker with its apps, I'd take these data points as signs that Apple is preparing to really kick some **tt. We can't predict just what Apple has planned, but this is the first iOS release salvo in which Samsung hasn't had any insight into what's coming.
So I suspect things are gonna get waaaay interesting.
The Autobots won't stand a chance! (Sorry, I couldnt resist)
The problem with reports like this is that they are quite useless. For all we know from this report, Pegatron might employ 99,000 workers building tractors, plus 500 each in the communication and consumer electronics division, of which 251 are working on iPhone and iPad mini components.
Also, when has any Apple supplier ever said publicly what percentage of their revenues come from Apple products?