Pegatron


'Pegatron' Articles

Pegatron to Invest up to $1 Billion in Indonesian iPhone Chip Factory

Apple supplier Pegatron plans to invest up to $1 billion in an Indonesian factory to produce chips for Apple smartphones, an Indonesian ministry official said on Tuesday (via Reuters). The Taiwan manufacturer made the pledge in a signed letter to the Indonesian government, in which it said the chips would be produced in partnership with Indonesian electronics company PT Sat Nusapersada, according to Deputy Minister Warsito Ignatius. Pegatron expects the investment to come somewhere between $695 million and $1 billion, although the variables influencing the exact amount have not been disclosed. In December 2018, Apple was said to be looking to shift production of older iPhones to Pegatron in an effort to avoid losing billions in revenue as a result of its patent dispute with Qualcomm. That dispute has since been resolved, however rising trade tensions between the U.S. and China has put manufacturers in both countries on alert. Pegatron has assembly plants in China, which suggests its pledge of Indonesian investment could be a contingency plan. According to today's report, the new Indonesian factory might also be used to produce MacBook components, although that operation "would not be in the short term," Ignatius told Reuters. A DigiTimes rumor in May 2018 tipped Pegatron to pick up orders from Apple to produce a MacBook powered by an ARM processor, although the information it was based on may have been misconstrued with the Touch Bar on Apple's MacBook Pro, which is already powered by an ARM-based T1 chip as a companion processor. Apple said in 2017 that

Apple Seeking to Shift iPhone Production to Pegatron to Offset Chinese Qualcomm Ban

Apple is reportedly looking to shift production of older iPhones to Taiwanese supplier Pegatron in an effort to avoid losing billions in revenue as a result of its patent dispute with Qualcomm. Earlier this week, Qualcomm was granted an import ban on the iPhone 6s through iPhone X in China after the court found those devices violated two Qualcomm patents. However, according to documents seen by Nikkei Asian Review, smartphones produced by Pegatron are exempt from the ban because the Taiwanese supplier paid license fees for the contested software, whereas rival iPhone assemblers Foxconn and Wistron did not. One of the sources with direct knowledge of the situation said Apple had held initial discussions with Pegatron about whether the Taiwan-based company could take on more iPhone production to make up for the impact of the ban. No decision has yet been taken, however. [...] Taking into account a consumer shift to newer models, it is estimated that the order barring production of older iPhone models by Foxconn and Wistron could hit Apple's sales by some $5 billion in 2018 or 3% of total iPhone revenue. This could be halved to about $2.5 billion if Pegatron is exempted, two sources said. And if Apple later decides to ask Pegatron to step up production, the impact would be even less, the sources added.Apple has warned that upholding the iPhone ban would cause "truly irreparable harm" to Apple, other companies, and consumers if it is forced to withdraw its devices from the market. Late on Thursday, Apple said it will release a software update to iPhone

Foxconn Expected to Assemble Bulk of 2018 iPhones

Taiwanese manufacturer Foxconn will assemble the majority of Apple's widely rumored trio of new iPhones expected to launch in 2018, according to the Taipei Times, citing research from Fubon Securities. Foxconn, formally known as Hon Hai, will reportedly assemble all of the second-generation iPhone X, 90 percent of the so-called iPhone X Plus, and 75 percent of an all-new, lower-priced 6.1-inch iPhone. Taiwanese manufacturer Pegatron is said to fulfill the remaining orders:Hon Hai has been selected to assemble the bulk of the new iPhones, including all of the premium 5.8-inch OLED model and 90 percent of the 6.5-inch OLED phones, as well as 75 percent of the 6.1-inch LCD model, with the remainder given to Pegatron, the report said.Wistron, another Taiwanese manufacturer, will not assemble any of the new 2018 iPhones, according to the report. Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple. Last month, respected Apple analyst Ming-Chi Kuo said all three new iPhones will be both announced and made available to order this September. In a previous research note, he indicated that Apple has resolved the manufacturing challenges that resulted in the iPhone X's delayed launch and supply

NYU Student Goes Undercover at Pegatron Factory, Offers Inside Look at iPhone Production

New York University graduate student Dejian Zeng spent last summer working in a Pegatron factory manufacturing the iPhone 6s and 7 as part of a summer project, where he got a first hand look at what factory life is like for a worker in China. Zeng did a extensive, detailed interview with Business Insider, where he shared his experience and offered up an inside glimpse at how factories like Pegatron work. When he first arrived at the factory, Zeng's job was in final assembly. His sole task was to put a sticker on the back of the iPhone 6s and add a screw, over and over again, a process that he said was "very boring." Employees at Pegatron are not allowed to bring in electronic devices, so there's no entertainment like music. Strict security measures are in place, including metal detectors, preventing outside devices from entering the factory. While Zeng started out assembling the iPhone 6s, the factory switched over to the iPhone 7 in August ahead of its September launch, providing an interesting look at how security ramps up when an unreleased device is being manufactured. According to Zeng, once the iPhone 7 was in trial production, the sensitivity of the metal detectors was ramped up, with no metal, including the metal of underwire bras, allowed through. Two security checks were also required, and new assembly line infrastructure had to be built. Apple employees were also on hand to keep an eye out for issues.When we were producing the iPhone 7, they have Apple staff there every single day to monitor the process because it's a new product they want to

Pegatron Ready to Build iPhones in the U.S. If Apple 'Is Willing to Absorb the Costs'

After months of reports surrounding iPhone manufacturers like Pegatron and Foxconn potentially moving Apple device construction to the United States, Pegatron CEO Syh-Jang Liao this week commented that the company could build iPhones and iPads in the U.S. on the condition that its client, Apple, is ready to pay for the costs of moving manufacturing stateside (via Focus Taiwan). Liao was responding directly to questions asked about President Donald Trump's request for American brands to keep their manufacturing in the U.S. In the wake of Trump's presidential win, months of reports have covered speculation about whether or not Apple suppliers could, or should, move production into the U.S. For Pegatron, if such a Trump initiative came into being, the company CEO said that it "already has its production lines in place." "As long as there is demand, whether the clients are American or Chinese, Pegatron already has its production lines in place," Liao said. "If Trump institutes his Made in America proposal, it will be fine for Pegatron as long the client is willing to absorb the costs." Just last week, Foxconn chairman Terry Gou raised concerns over the manufacturer's shift of iPhone production to the U.S. In his comments, he cited concern over whether or not the U.S. government could keep up with the regulations and laws needed to be passed before Foxconn would be able to build major iPhone plants in the country. Echoing Apple CEO Tim Cook, Gou also mentioned that the U.S. lacks the skilled labor needed for these plants to thrive. In recent Apple-related Pegatron

Apple Demanding Price Cuts From Suppliers Ahead of iPhone 7

Apple is demanding price cuts on components for the new iPhone from its overseas suppliers to maintain its high profit margins, despite a global slowdown in smartphone sales, according to Taiwanese website DigiTimes. The report claims several large Taiwan-based component suppliers such as Foxconn, Largan Precision, and Pegatron have already been affected, while strong competition in Greater China forcing the companies to "compete aggressively" over Apple's orders by cutting prices. Currently, Largan is facing strong competition from Japan-based Kantatsu over camera module orders, while Foxconn and Pegatron are seeing Apple adding new ODM partners such as Wistron for the production of its new iPhone.Apple is expected to announce the iPhone 7 series in September. The smartphones are expected to retain iPhone 6s-like designs with faster Apple A10 processors, dustproofing and waterproofing, repositioned antenna bands, and faster LTE and Wi-Fi. A dual-lens camera and 3GB of RAM may be exclusive to the 5.5-inch model. Other rumored features include a Smart Connector, stereo speakers, and a flush, touch-sensitive home button, but it is not entirely clear if each of those features are destined for the iPhone 7 or iPhone 7 Plus/Pro, no longer planned, or reserved for the alleged OLED-based iPhone with glass casing expected in

Apple Diversifies Suppliers for iPhone 7 Due in September

Apple will rely on multiple manufacturing partners to assemble the iPhone 7 and iPhone 7 Plus, including Foxconn, Pegatron, and Wistron, according to Taiwanese website DigiTimes. The new 4.7-inch model will reportedly be assembled by Foxconn and Pegatron, while the 5.5-inch model will be made by Foxconn and Wistron. Apple typically diversifies suppliers to aim for a smooth iPhone launch. "Wistron was a manufacturer of Apple's iPhone 5c and has already prepared sufficient capacity for the next-generation iPhone orders," the report adds. Wistron has also been tasked with iPhone SE orders. The report unsurprisingly confirms that Apple's next-generation flagship iPhones will launch at the end of the third quarter, setting the stage for a traditional September announcement and release, likely by no later than the third week of the month. DigiTimes has a mixed track record at reporting on Apple's upcoming product plans, but its sources within the upstream supply chain have proven reliable at times. Rumors suggest the iPhone 7 could retain a 6s-like design with a faster TSMC-built A10 chip, slightly larger battery, waterproofing and dustproofing, repositioned antenna bands, no headphone jack, faster Intel LTE chips, and more. Meanwhile, the larger iPhone 7 Plus (or Pro) could have a Smart Connector, dual-lens camera, and 3GB of RAM. Other rumors surrounding the next-generation smartphones have included a flush camera, touch-sensitive home button, stereo speakers, and wireless charging, but it remains possible that Apple dropped some of those features or chose to

Apple's Suppliers Projecting Weak Demand for iPhone 7 Due to 'Lack of Innovation'

Apple recently reported its first year-over-year decline in iPhone sales, with CEO Tim Cook claiming one of the reasons is that the upgrade cycle for the larger iPhone 6 and iPhone 6s series has stretched out longer than it anticipated. Despite the launch of the lower-priced iPhone SE, that decline is expected to continue into the second half of this year. In reporting its first negative-growth quarter since 2003, Apple forecasted another revenue drop next quarter. The sales decline is placing downward pressure on Apple's overseas suppliers, who have ridden the iPhone's coattails to success over the past half-dozen years. Not only does LCD supplier Japan Display reportedly expect to post a nearly $300 million loss for the fiscal year ended March, but Nikkei reports that Apple's slowdown is also sending Taiwanese suppliers into a downward spiral."Suppliers are saying that they are getting fewer orders for the second half of this year compared with the year-ago period," a source said. "The traditional peak season this year will not be able to compare to the past few years."The report claims Taiwanese Semiconductor Manufacturing Company (TSMC), one of Apple's primary chip suppliers, may ship up to 30% fewer chips in the second half of 2016 compared to the year-ago period. The decline is attributed to the iPhone 7's expected lack of innovative features, saturation of the smartphone market, increased competition, and a global economic slowdown.Another source said that for Taiwan Semiconductor Manufacturing Company, the sole supplier for the latest A10 chips used in iPhone

First Look Inside Pegatron's Secretive Shanghai iPhone Assembly Plant

Bloomberg has been granted an exclusive look inside a Chinese iPhone manufacturing plant where Apple claimed it has addressed cases of excessive overtime. Pegatron Corp.'s sprawling facility on the outskirts of Shanghai covers an area equal to 90 football fields and employs some 50,000 people in the iPhone assembly process. After accusations that employees were forced to work long, grueling hours there, Pegatron and Apple adopted new procedures to keep iPhone assemblers from amassing excessive overtime. By granting a western journalist access to the facility for the first time, both companies appear eager to show how the system works. Image: Qilai Shen/Bloomberg In the center of the Pegatron campus is a plaza with a firehouse, police station, and post office. Dotted about are shuttle buses, mega-cafeterias, landscaped lawns, and koi ponds. The grey and brown-hued concrete buildings are meant to evoke traditional Chinese architecture, but the scenes inside them are anything but traditional. The men and women stare into face scanners and swipe badges at security turnstiles to clock in. The strict ID checks are there to make sure they don't work excessive overtime. The process takes less than two seconds. After passing through metal detectors to sniff out camera-equipped devices that could be used to leak pictures of unreleased new products, the workers follow arrows on the floor and inspirational posters on the wall. They climb up a stairwell with safety netting draped across the middle, to prevent accidents—or suicide attempts. At a bank of lockers, they

Pegatron to Become Apple's Primary iPad Manufacturing Partner?

Taiwanese publication Digitimes, which gained some notice late last week for its claim that Apple is preparing the iPad 3 for a March release ahead of an "iPad 4" launch just six months later, is adding additional color to its rumors with a new report claiming that Pegatron is set to become Apple's primary manufacturing partner for the iPad. Pegatron, which was rumored as long as six months ago to be ramping up as an iPad manufacturer, would displace Foxconn in that role.Pegatron Technology has reportedly already landed a small volume of orders for the upcoming "iPad 3" (generally called by supply chain players), which is set to launch in March, while the company is expected to see a significant increase in its orders for Apple's "iPad 4," which is scheduled to launch in October, with an initial volume of about 7-10 million units, according to sources from the upstream supply chain. Pegatron did not comment on the report at the time of publication. The sources pointed out that Apple will also start changing its outsourcing strategy and will have Pegatron primarily focus on production of the iPad series products with production of the iPhone series products as an auxiliary in 2013, while the strategy for Foxconn Electronics (Hon Hai Precision Industry) is vice versa.Digitimes has in the past offered accurate information from Apple's supply chain, but its reliability has more recently come into question with some unlikely and/or incorrect