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, 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.
© Thomson Reuters 2013
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