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.

Top Rated Comments

jrswizzle Avatar
111 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
111 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
111 months ago
40%!



The Autobots won't stand a chance! (Sorry, I couldnt resist)
Score: 4 Votes (Like | Disagree)
gnasher729 Avatar
111 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
111 months ago
I read this as "Pentagon" as in the Pentagon, and was very confused.
Score: 2 Votes (Like | Disagree)
Rogifan Avatar
111 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)

Related Stories

studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
airtag in hand

Apple Enhancing AirTags Anti-Stalking Measures With Android App and Shorter Sound Intervals

Thursday June 3, 2021 11:10 am PDT by
Apple is enhancing AirTags security to prevent stalking using the Bluetooth devices, Apple told CNET today. Apple is already sending out over-the-air updates to AirTags that will shorten the amount of time before an unknown AirTag alerts you if it is in your possession. At the current time, AirTags play a sound after three days of being away from their owner. After the update, AirTags will...
maxresdefault

Here's How Apple's New iPhone to iPhone Data Migration Feature Works in iOS 12.4

Tuesday July 23, 2019 1:20 pm PDT by
Apple this week released iOS 12.4, the newest version of iOS 12 available for iPhones and iPads. One of the new features in iOS 12.4 is an updated data migration option that uses device to device transfers rather than relying on iCloud. Apple didn't provide much information on the new data migration feature, so we thought we'd check it out in our latest YouTube video. Subscribe to the ...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
macos catalina legacy system extension alert

Apple Begins Warning Users That 'Legacy System Extensions' Won't Work With a Future Version of macOS

Wednesday March 25, 2020 9:53 am PDT by
Apple has shared a new support document that indicates kernel extensions — which it calls "legacy system extensions" — will not be compatible with a future version of macOS because they "aren't as secure or reliable as modern alternatives."System extensions are a category of software that works in the background to extend the functionality of your Mac. Some apps install kernel extensions, which...
os x mountain lion macs 16x9 2

Apple Makes OS X Lion and Mountain Lion Free to Download

Wednesday June 30, 2021 12:19 pm PDT by
Apple recently dropped the $19.99 fee for OS X Lion and Mountain Lion, making the older Mac updates free to download, reports Macworld. Apple has kept OS X 10.7 Lion and OS X 10.8 Mountain Lion available for customers who have machines limited to the older software, but until recently, Apple was charging $19.99 to get download codes for the updates. As of last week, these updates no...
airtag precision finding

AirTag Includes U1 Chip for 'Precision Finding' Feature

Tuesday April 20, 2021 12:11 pm PDT by
Apple's long-awaited AirTag was finally unveiled today, and as expected, the small circle-shaped accessories can be attached to items like wallets, keys, and more to allow them to be tracked in the Find My app. As was rumored ahead of release, each AirTag is equipped with a U1 chip, and on devices that also have U1 chips, there's a Precision Finding feature. U1 Ultra Wideband chips are...
iOS 15 General Feature Yellow

Everything New in iOS 15 Beta 6: SharePlay Disabled, Safari Redesigned and More

Tuesday August 17, 2021 2:12 pm PDT by
Apple released the sixth beta of iOS 15 just a week after the fifth beta, but the new update brings some of the most significant tweaks that we've seen to iOS 15 during the beta testing period. Safari Redesign Apple in iOS 15 beta 6 has added a toggle to move the Safari address bar to the top of the interface, which returns Safari to an iOS 14-like design and mitigates all of the Safari...
m1 macbook air

Kuo: Mini-LED MacBook Air Coming in Mid-2022

Thursday July 22, 2021 7:48 pm PDT by
Apple will release a new version of the MacBook Air around the middle of 2022, Apple analyst Ming-Chi Kuo said today in note to investors seen by MacRumors. The upcoming MacBook Air will feature a 13.3-inch mini-LED display, which would make it the second Mac to gain mini-LED technology after the 2021 MacBook Pro, which is rumored to include a mini-LED display and is expected to launch later ...
2016 macbook pro flexgate b

Apple Faces Another Class-Action MacBook Pro ‘Flexgate’ Lawsuit

Thursday August 20, 2020 6:43 am PDT by
Another class-action complaint has been lodged against Apple, which claims that the company was aware of a MacBook Pro design flaw that caused some devices to have backlight display issues (via Apple Insider). The so-called "flexgate" problem was present in some MacBook Pro models manufactured between 2016 and 2017. The problem appears as dark patches along the bottom of the MacBook Pro's...