Apple reportedly placed order for 15M next-gen iPhones from Pegatron
A new report claims Apple manufacturer Pegatron has received orders to produce 15 million units of the "iPhone 5" as the device's expected fall launch nears.
As first noticed by Bloomberg's Yu-Huay Sun, unidentified component suppliers indicated to Taiwan industry publication DigiTimes that Pegatron had been contracted for an estimated 15 million handsets. The publication also claims Apple's next-generation smartphone is coming "soon" and will begin shipping in September.
It should be noted, however, that DigiTimes has an uneven track record with Apple predictions, though its accuracy improves slightly when reporting on manufacturing contracts.
According to the report, previous orders for the CDMA iPhone 4 bound for Verizon Wireless helped Pegatron to expand its Shanghai facilities and hire new workers, though first quarter sales of the device were reportedly lower than Pegatron had expected, causing the company's "utilization rate to drop to 50 percent." Sources suggested earlier this year that the manufacturer had received orders of "at least 10 million units" for Apple's next iPhone.
The alleged increase in numbers from 10 million to 15 million units may reflect Apple's bullish outlook on the iPhone after record sales last quarter. iPhone sales grew an impressive 113 percent year over year in the first calendar quarter of 2011 to reach 18.65 million units. Analysts expect those number to undergo a slight dip sequentially throughout the summer before reaching new heights with the projected launch of the next-generation iPhone.
Pegatron stock jumped 3.1 percent, the largest gain in three weeks, in response to the rumor regarding Apple's order.
Though Foxconn has traditionally been Apple's largest contract manufacturer, Pegatron, which was originally a subsidiary of Asus before being spun off in 2010, has reportedly won several major contracts from the iPhone maker in recent months. The report claims the manufacturer is aggressively striving for iPad or MacBook orders from Apple, but has yet to succeed because "the products' existing makers are defending their orders." The Taipei-based manufacturer reported revenue of $18.4 billion in 2010, compared to Foxconn's $59.3 billion in revenue last year.
As first noticed by Bloomberg's Yu-Huay Sun, unidentified component suppliers indicated to Taiwan industry publication DigiTimes that Pegatron had been contracted for an estimated 15 million handsets. The publication also claims Apple's next-generation smartphone is coming "soon" and will begin shipping in September.
It should be noted, however, that DigiTimes has an uneven track record with Apple predictions, though its accuracy improves slightly when reporting on manufacturing contracts.
According to the report, previous orders for the CDMA iPhone 4 bound for Verizon Wireless helped Pegatron to expand its Shanghai facilities and hire new workers, though first quarter sales of the device were reportedly lower than Pegatron had expected, causing the company's "utilization rate to drop to 50 percent." Sources suggested earlier this year that the manufacturer had received orders of "at least 10 million units" for Apple's next iPhone.
The alleged increase in numbers from 10 million to 15 million units may reflect Apple's bullish outlook on the iPhone after record sales last quarter. iPhone sales grew an impressive 113 percent year over year in the first calendar quarter of 2011 to reach 18.65 million units. Analysts expect those number to undergo a slight dip sequentially throughout the summer before reaching new heights with the projected launch of the next-generation iPhone.
Pegatron stock jumped 3.1 percent, the largest gain in three weeks, in response to the rumor regarding Apple's order.
Though Foxconn has traditionally been Apple's largest contract manufacturer, Pegatron, which was originally a subsidiary of Asus before being spun off in 2010, has reportedly won several major contracts from the iPhone maker in recent months. The report claims the manufacturer is aggressively striving for iPad or MacBook orders from Apple, but has yet to succeed because "the products' existing makers are defending their orders." The Taipei-based manufacturer reported revenue of $18.4 billion in 2010, compared to Foxconn's $59.3 billion in revenue last year.
Comments
I am so over the iPhone speculation - get release it so I can buy the damn thing already
I completely agree. I can't wait for the new iPhone to be at least unveiled so I can know what it is I'm buying... Haha.
Still, since she got the iPhone 4, I will buy the next one for myself, so I am looking forward to it.
Nice to hear someone else is making the iDevice for a change. Not that there's anything wrong with Foxconn but this shows there are alternatives. I guess any company would guard their contract with Apple rigorously. They could even do more than selling their children and what not for it. Or smoke their lazy bum workers out. Or sent them leakers to prison. Whatever. I'll buy one SIM free.
Oh, there's plenty of things wrong with Foxconn, although I'm sure this new supplier would have similar ethical issues.
I am so over the iPhone speculation - get release it so I can buy the damn thing already
I'm pretty sure iPhone 5 won't be released before iOS 5, so Apple can offer it PC free, i.e. no need for the iPhone 5 any more to being activated through iTunes.
Sources suggested earlier this year that the manufacturer had received orders of "at least 10 million units" for Apple's next iPhone. [...]
iPhone sales grew an impressive 113 percent year over year in the first calendar quarter of 2011 to reach 18.65 million units. Analysts expect those number to undergo a slight dip sequentially throughout the summer before reaching new heights with the projected launch of the next-generation iPhone.
Who else thinks that 10-15mio is an awfully low order for a full quarter if analysts expect more than 18.65mio to be sold of the next-generation iPhone.
I have the sneaking suspicion that the 10-15mio are only 1/3 to 1/2 of the full number of iPhones Apple expects to sell in its fall i.e. Christmas quarter with the remaining going to Foxconn. And I would not be surprised if those Foxconn orders would be the true iPhone 5.
In a time when Android phones offer choice and variety it seems odd that there is just one iPhone model. Even the iPods eventually diversified to expand the market share.
Should Apple still keep the iPhone 3GS around after September?
Wouldn't it make more sense to have an iPhone 4, 4S and 5?
I'm pretty sure iPhone 5 won't be released before iOS 5, so Apple can offer it PC free, i.e. no need for the iPhone 5 any more to being activated through iTunes.
I do agree with you about the next iPhone shipping with iOS 5 installed. When Apple seeds iOS 5 GM to developer this fall that will indicate that the next iPhone is in production. Of course, Apple will most likely announce the both at the same event.
If they are going to sell the new iPhone between Sept and christmas then they will need more than 15 millions for the first two months. This time it is more than one and half year gap so almost all early adopter who bought the iPhone 4 last year will be eligible for the upgrade. Not to mention it will make a great holiday gift.
I do agree with you about the next iPhone shipping with iOS 5 installed. When Apple seeds iOS 5 GM to developer this fall that will indicate that the next iPhone is in production. Of course, Apple will most likely announce the both at the same event.
If they are going to sell the new iPhone between Sept and christmas then they will need more than 15 millions for the first two months. This time it is more than one and half year gap so almost all early adopter who bought the iPhone 4 last year will be eligible for the upgrade. Not to mention it will make a great holiday gift.
Yeah, I'm sure Apple will announce a September event as they usually do but use it to showcase iOS 5 in it's GM state, and unveil the iPhone 5 ready to ship within a week or two of that event, iOS 5 being released at the same time. This event will probably replace the usual iPod event - I doubt we'll see many iPod updates this year - perhaps just the Touch will get the new iPhone specs... like the A5 chip. Maybe the iPod event will be pushed to late Oct/early Nov to really push holiday sales.
iPhones will sell like crazy this time around no doubt and 15 million will probably not be enough! Likely that Foxconn and this new supplier are sharing it I would think considering Apple's history with Foxconn.
I am so over the iPhone speculation - get release it so I can buy the damn thing already
Besides a little bit faster processor and maybe a few mm more screen real estate how different could the phone be?
Besides a little bit faster processor and maybe a few mm more screen real estate how different could the phone be?
If you're a believer of the 'iPhone 4S' camp then likely all you'll get is a faster processor and maybe an 8 megapixel camera and maybe a new flash location further away from the backside camera.
If you're lucky more memory as option.
If you're a believer of the 'iPhone 5' camp (or a believer of a double release 'iPhone 4S + iPhone 5') then you will also get more screen real estate, a new design (reportedly 'tapered'), maybe RFID and perhaps more color choices other than black or white.
If you are very lucky maybe even a new screen technology with better outdoor visibility, viewing angles and less power consumption.
You choose your belief group...
Besides a little bit faster processor and maybe a few mm more screen real estate how different could the phone be?
It could be/have some combination of
- even thinner
- better flash placement
- better camera
- better antenna
- more storage
- combined CDMA & GSM
That's before I even start suggesting the really weird/unlikely things like 4G support or use of curved glass.Nice to hear someone else is making the iDevice for a change. Not that there's anything wrong with Foxconn but this shows there are alternatives.
Actually, the CDMA iPhone 4 has been contracted to Pegatron from the start. It doesn't surprise me that they'd be contracted to do the next generation of iPhones.
As to the "4S or 5" debate, I think they'll release a 4S, with an edge-to-edge 3.5" display, A5 chip, and dedicated camera button. Maybe it'll be a bit smaller and thinner than the iPhone 4, but minimally so, to account for the battery.
The real question is if they'll produce a 2G-only iPhone for developing markets? Is that why Apple has been seen around China Mobile HQ? I doubt they'd be willing to develop a TD-SCDMA iPhone, if only because Apple may not be immune to OGG-style patent lawsuits in the US.
I doubt they'd be willing to develop a TD-SCDMA iPhone, if only because Apple may not be immune to OGG-style patent lawsuits in the US.
I think Apple would be willing to run that risk. Any phone made in China, with a Chinese chipset and for the Chinese market would be completely outside US patent law. A US patent holder who felt infringed could go to the ITC and demand that such a phone not be imported into the US, but what is that going to accomplish? Nobody would use the phone in the US anyway.
SJ better have enough product to sell, as stated above, this delay allows even more end contracts and move in or away fromt he iphone
inventory, and having product to sell DAY 1 is mandatory
production, production, production
this could be a major mistep if not handled properly
i think from a strategic position, with the android army out there beating and iphones door
SJ better have enough product to sell, as stated above, this delay allows even more end contracts and move in or away fromt he iphone
inventory, and having product to sell DAY 1 is mandatory
production, production, production
this could be a major mistep if not handled properly
Didn't you get the memo? Android "won", just like Microsoft "won".
Apple is making the iPhone as fast as they possibly can without quality going down the drain.
To be fair, I understand what you're saying and I agree, Apple needs to be spot on. But with Steve still on leave and honestly not looking too hot at WWDC 2011, the different arms of Apple need to be tightly in sync. Tim Cook is doing his best, but let's face it, Apple with Steve actively involved is a still different from Apple without Steve 100% actively involved. Hence I remain hopeful but realistic.
But perhaps we're looking at it from a glass-half-empty perspective. Apple only "needs" to execute perfectly because the demand is so high. That's still a good sign.
I'm almost certain it'll be marketed as iPhone 5 regardless.