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  • Apple Manufacturer Pegatron Sees Earnings Grow 22% in First Quarter


    Pegatron, which is the main assembler for both the iPhone 5C and iPad mini, saw its earnings grow 22% in the first quarter, potentially signaling strong sales of Apple’s low-end iOS devices.

    At a recently held investor conference, the company revealed that its fourth quarter earnings were driven by mobile devices like iPhones and iPads. Pegatron officials declined to comment specifically on Apple products, which means any data on the iPad mini or iPhone 5C remains unknown. KGI Securities estimates that Pegatron’s assembly contracts with apple roughly account for 40% of the manufacturing company’s revenue.

    For those of you who didn’t already know, Foxconn has been Apple’s primary assembly partner for years but Pegatron has nudged its way into contracts to become the chief builder of the iPhone 5C and iPad mini units. Although Pegatron has previously helped make older iPhone models, the iPhone 5C represents the first time the company has been tasked with building a new model in Apple’s lineup.

    Pegatron is currently expecting sequential shipments of smartphones, tablets and game consoles to drop between 15% and 20% in the first quarter. The losses are season as few new products ship in the first quarter. Recent rumors have suggested that Pegatron could play an even greater role in Apple’s supply chain going forward with a recent report claiming the company could be contracted to build a so-called “iPhone 6” later this year. It’s been said that both Pegatron and Foxconn could share the manufacturing duties for Apple’s next flagship smartphone. We’ll just have to wait and see.

    Source: The Wall Street Journal
    This article was originally published in forum thread: Apple Manufacturer Pegatron Sees Earnings Grow 22% in First Quarter started by Akshay Masand View original post