Apple supplier Pegatron boosts China workforce by 40 pct in H2

TAIPEI Wed May 8, 2013 11:32pm EDT

TAIPEI May 9 (Reuters) - Pegatron Corp, an assembler of Apple Inc's iPhone and iPad, said it would increase its number of workers in China by up to 40 percent in the second half of the year, fuelling market speculation of a new cheaper iPhone.

Pegatron currently employs 100,000 workers.

Suppliers have told Reuters that Apple is developing a cheaper model of the phone, broadening its sales base to lower-income buyers in growth markets such as China and India.

A supplier source in Japan said small-scale production of the display panel for the model would begin in May, ramping up to mass production in June.

Apple is widely expected to launch the cheaper version of the iPhone in the third quarter.

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. He said there would be new computer models after Intel launches its new Haswell processor.

Pegatron President and Chief Executive Officer Jason Cheng told an investor conference on Wednesday that revenue from communication products would contribute up to 40 percent to total in the six months from June, compared to 24 percent in the three months in the beginning of the year, local media reported.

Pegatron posted a 81 percent surge in net profit in the first quarter from a year earlier to T$2.31 billion ($78.59 million), while its operating margin improved to 0.8 percent from 0.3 percent in the previous quarter.

"Making the cheaper iPhone will further help Pegatron's operating margin because its plastic casing is easier to make than iPhone 5's metal casing; this should ensure a good yield rate," said Fubon Securities analyst Arthur Liao.

Liao added a higher yield rate would also be bring an edge to Pegatron's profibility over Hon Hai Precision Industry , the major supplier to Apple.

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Comments (2)
BringJobsBack wrote:
Way to go Apple – Do you think Americans could build your phones? How about that – IPhone – MADE IN THE USA. Of course my cell phone was not made here just like most of the consumer products these days but it is not an Apple product. Also purchased a Nexus 10 (not made here either) but it has much better resolution than an IPad.
American politicians continue to moan and groan over debt, deficits, unemployment and the high cost of government. If Apple would employee Americans those Americans would pay taxes in the USA.
“There are over 200 WalMart stores in China…….how proud the shoppers in these stores must be to see everything in them made in THEIR country……….Are you proud? railroadingamerica.com

May 10, 2013 2:01pm EDT  --  Report as abuse
BringJobsBack wrote:
Way to go Apple – Do you think Americans could build your phones? How about that – IPhone – MADE IN THE USA. Of course my cell phone was not made here just like most of the consumer products these days but it is not an Apple product. Also purchased a Nexus 10 (not made here either) but it has much better resolution than an IPad.
American politicians continue to moan and groan over debt, deficits, unemployment and the high cost of government. If Apple would employee Americans those Americans would pay taxes in the USA.
“There are over 200 WalMart stores in China…….how proud the shoppers in these stores must be to see everything in them made in THEIR country……….Are you proud? railroadingamerica.com

May 10, 2013 2:01pm EDT  --  Report as abuse
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