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_logo
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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Top Rated Comments

jrswizzle Avatar
144 months ago
Image (http://images3.wikia.nocookie.net/__cb20120321193158/villains/images/1/14/G1-Megatron_1301774239.jpg)

The Autobots won't stand a chance! (Sorry, I couldnt resist)


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."
Score: 7 Votes (Like | Disagree)
ihateilove Avatar
144 months ago
The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?

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.
Score: 6 Votes (Like | Disagree)
daitenshe Avatar
144 months ago
40%!



The Autobots won't stand a chance! (Sorry, I couldnt resist)
Score: 4 Votes (Like | Disagree)
gnasher729 Avatar
144 months ago
"I suggest its good to question the accuracy of any kind of rumor about build plans. Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on."

-horse's mouth
The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?


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.
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.
Score: 3 Votes (Like | Disagree)
iGeek Avatar
144 months ago
I read this as "Pentagon" as in the Pentagon, and was very confused.
Score: 2 Votes (Like | Disagree)
Rogifan Avatar
144 months ago
But, but, but Bloomberg just told us the other day iPad mini demand is declining. :confused:

Also, when has any Apple supplier ever said publicly what percentage of their revenues come from Apple products?
Score: 2 Votes (Like | Disagree)