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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