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Pegatron reportedly wins Apple contract for CDMA iPhone

post #1 of 62
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A Taiwan newspaper is reporting that Apple has awarded a contract for building a CDMA iPhone to Pegatron Technologies.

The report comes from DigiTimes, which has an uneven track record on Apple in general, but a slightly better batting average when discussing the details of manufacturing contracts.

In February, DigiTimes announced Pegatron had won the contract for building the expected next generation UMTS iPhone 4. Previous iPhones have been built by Foxconn, which also builds Apple's Mac mini, iPods and the iPad, and is the company's main supplier.

Rumors surrounding the possibly of a CDMA iPhone model that Apple could sell through Verizon and Sprint have regularly surfaced throughout the iPhone's entire history, and have recently blossomed as speculation about the end of AT&T's exclusive contract in the US has reached a fevered pitch.

At the same time, DigiTimes has also reported rumors of an upcoming new iPad with an OLED display, which are almost certainly wrong. The paper also incorrectly announced in late 2006 that Apple was working with AMD to deliver notebooks using its CPUs, and then reported last year that Apple was building a netbook for delivery in 2009.

Pegatron is a three year old Taiwanese company formed during a restructuring of Asustek, which resulted in a split between Asustek's own Asus-branded products, its PC-related manufacturing performed under the Unihan name, and contract manufacturing under the Pegatron name.
post #2 of 62
Very reliable source (good track record). I think I will wait and see- this should be a good re-rumor for those wanting other carriers but it sounds like the same ole stuff.
post #3 of 62
No T-mobile? This is Sacrilege!
post #4 of 62
Quote:
Originally Posted by Quash View Post

No T-mobile? This is Sacrilege!

Tell me about it.

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post #5 of 62
Why would Apple use a new company and not the tried and tested? Color me not convinced.
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post #6 of 62
It's coming! Verizon will have the iPhone before the summer ends!

The only thing that has changed in the last 6 months is the upsurge in Android/Droid usage. Albeit, due to '2-for-1' promotions, multiple carriers and multiple models.

Google doesn't care about hardware (just like MS)...they will give it away to get the 'cream' which is advertising revenue.

Google for that matter doesn't care about software either....they will give that away too. Again for ad revenue!

So here we have Google giving away hardware (a la MS) and trumping MS by giving away the software...all for ad revenue!

Apple has done well to stay above fray but needs to setup a 'superior, Apple-like' search engine of their own and hurry up an develop the iAd.

Apple has superior hardware, software and now they need superior Search and target ad revenue!
post #7 of 62
I don't buy it either. With Verizon rolling out LTE so soon, this makes little business sense for Apple.
post #8 of 62
Smells fishy.

No CDMA engineering hiring surge at Apple. Verizon CEO practically begging for the iPhone a couple of months ago (Apple partners normally clam up real fast when a deal is in the works). Selecting an unproven OEM PC supplier as the sole provider of a CDMA smartphone.

I'm not buying it.

I could see Apple testing Pegatron as the second supplier (next to Foxconn) for the next-generation iPhone, then eventually offering more work to Pegatron as it builds a good track record. To solely hand them such a (theoretically) important contract seems unlikely.

DigiTimes has such a spotty record, I'm inclined to dismiss this as poppycock. Maybe this should be moved to the Backpage Blog.
post #9 of 62
Based on source and history I have to assume this is completely false.

Though I'd love for it happen, even though I'll be staying with AT&T.
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post #10 of 62
Quote:
Originally Posted by christopher126 View Post

Apple has done well to stay above fray but needs to setup a 'superior, Apple-like' search engine of their own and hurry up an develop the iAd.

Apple has superior hardware, software and now they need superior Search and target ad revenue!

I think iAd will have a slow start, as the FTC is reportedly gauging its assessment of Google's acquisition of AdMob by whether or not they'll have a significant ad competitor in the mobile space.
post #11 of 62
Apple has almost reached most of the GSM carriers worldwide. The technology is there to develop iPhones for other "telecommunication systems", notably those using variants of the CDMA. If true, it is possible that such an iPhone may either be for Verizon or possibly for China Mobile.

http://forums.appleinsider.com/showp...1&postcount=20

In the United States, if such an iPhone will be developed, it might force AT&T and Verizon to compete more vigorously, in terms of their pricing. This may not always happen though because of the oligolopolistic market, where there are not enough competitors.

Another issue, GSM is more widespread worldwide than the CDMA. This may be resolved when the converging upgrade technologies that will be used by both AT&T and Verizon in the near future.

Quote:
Originally Posted by DHKOsta View Post

I don't buy it either. With Verizon rolling out LTE so soon, this makes little business sense for Apple.

As noted by many CDMA users, and this post, there is a large market for CDMA phones -- China being one good example. It is also the case that almost all telephone manufacturers, including Nokia, RIMM, and all those Asian manufacturers produce both types of phones that work for either GSM or CDMA. So, this argument is not valid.

Quote:
Originally Posted by digitalclips View Post

Why would Apple use a new company and not the tried and tested? Color me not convinced.

Actually, Apple has done this in the past when its main product was the computer. The fact that Apple now has different manufacturers for some of its products attest to this. Since the CDMA is very different from GSM, maybe it was a good idea to have a different manufacturer. Note also that the "new company" is not really entirely new to Apple.

Its use of multiple manufacturers has proven to be a salvation when there was a problem in one location either technical, worker issues or even due to inclement weather. Read the next post by sheff, also.

CGC
post #12 of 62
Sounds legit. Manufacturing both at a single source would be risky, since any malfunction at one plant could hinder the supplies of another one. And since so many other iProducts are made at FOXXcon it would make sense to diversify. Plus there is a better chance of CDMA phones would create a surge in demand, that would put an even larger strain on foxxcon.

I say this might be legit, but I think these phones will go to sprint rather then Verizon. Now that Palm is dead Sprint needs a new flagship phone. iPhone could be their last chance increase market share. Verizon seems to be very happy with Google-HTC and I don't think they want to piss any of those two off by selling the iPhone.
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post #13 of 62
Quote:
Originally Posted by digitalclips View Post

Why would Apple use a new company and not the tried and tested? Color me not convinced.

I'm not sold either.
post #14 of 62
I'd like everyone to know that I'm loving the company of skeptics here. I usually feel pretty alone in my eyerolling at the CDMA iPhone rumors.
post #15 of 62
This isn't the first time around for this rumor. All DigiTimes is doing, as far as I can tell, is recycling the March 29 rumor about Pegatron that was published in the Wall Street Journal. Which financial institution is trying to pump and dump Apple stock this week?
post #16 of 62
Doubtful yet quietly praying.
post #17 of 62
Quote:
Originally Posted by digitalclips View Post

Why would Apple use a new company and not the tried and tested? Color me not convinced.

Pegatron is not a new company. Read the article again. They are the OEM manufacturing arm of what used to be Asustek, which has been around for 20 years. I've built several PCs for friends using Asus motherboards and have been very impressed with their quality, design and features. I've also seen their CPU coolers (although I always spec Cooler Master for all the custom builds I do), DVD burners and netbooks. All quite solid. My own Hackintosh runs an Asus graphics card. Their manufacturing abilities are much better than you assume from your position of ignorance.
post #18 of 62
Quote:
Originally Posted by Kolchak View Post

Pegatron is not a new company. Read the article again. They are the OEM manufacturing arm of what used to be Asustek, which has been around for 20 years. I've built several PCs for friends using Asus motherboards and have been very impressed with their quality, design and features. I've also seen their CPU coolers (although I always spec Cooler Master for all the custom builds I do), DVD burners and netbooks. All quite solid. My own Hackintosh runs an Asus graphics card. Their manufacturing abilities are much better than you assume from your position of ignorance.

I'm sure he meant 'new' as in not Foxconn. Try reading his post non-literally...
post #19 of 62
If it's true, then would that mean a CDMA iPhone would follow. Not necessarily launch at the same time. But CDMA in the Fall?
post #20 of 62
I gots two words for ya:

Yeeee UccccccK!
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post #21 of 62
What kind of name is Pegatron? Makes me think that Megatron is in a family way.
I just don't see Apple doing a cdma phone this year.
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post #22 of 62
Considering Sprint has the EVO 4G coming out June 4th, I'm not too hopeful that we will see a late June release of the iPhone on Sprint, but I'm holding off trading my LG Lotus up to an EVO until I know what is happening with the iPhone.
post #23 of 62
Quote:
Originally Posted by cvaldes1831 View Post

Smells fishy.

No CDMA engineering hiring surge at Apple. Verizon CEO practically begging for the iPhone a couple of months ago (Apple partners normally clam up real fast when a deal is in the works). Selecting an unproven OEM PC supplier as the sole provider of a CDMA smartphone.

I'm not buying it.

I could see Apple testing Pegatron as the second supplier (next to Foxconn) for the next-generation iPhone, then eventually offering more work to Pegatron as it builds a good track record. To solely hand them such a (theoretically) important contract seems unlikely.

DigiTimes has such a spotty record, I'm inclined to dismiss this as poppycock. Maybe this should be moved to the Backpage Blog.

Exactly....good catch. Add this to another reason this shouldn't be "news."
post #24 of 62
You do understand Apple sells phones in other places of the world other the the US right? For instance, China and Brazil both of which use the same technology Verizon does.

Quote:
Originally Posted by DHKOsta View Post

I don't buy it either. With Verizon rolling out LTE so soon, this makes little business sense for Apple.
post #25 of 62
I'll believe this when I can walk into the local Verizon store and actually see one.
post #26 of 62
Quote:
Originally Posted by monstrosity View Post

I'm sure he meant 'new' as in not Foxconn. Try reading his post non-literally...

Every company is "new" at one time. Even Foxconn. No intelligent company would stay with a supplier only because that's who's been contracted in the past. Competitive bidding from multiple companies is the best way to keep costs down.
post #27 of 62
The only way this makes any sense is if Apple needs to penetrate a market for mid 2010-mid-2011. What are we talking about? 1 million phones? 2million? 5?

Or if Apple wants to include multiple radios... Even worse!

Why build a dead-end product variant, when everything you make, likely, will be supply-constrained?

.
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post #28 of 62
Even as Verizon is starting to roll out LTE, you have to keep in mind that it doesn't have a voice standard, only data. So it'll be at least 2015 before phones will be made without the fallback radio for either GSM or CDMA. Even then, i expect CDMA to still be around in 8 years, in places where upgrade is not top priority.

So for now LTE will be used to take the data load off the 3G networks. The extra bandwidth will be necessary as more and more people upgrade to smartphones, since with Verizon, you HAVE to buy a data plan as a part of your contract.



Dan
post #29 of 62
Quote:
Originally Posted by Dick Applebaum View Post

Why build a dead-end product variant, when everything you make, likely, will be supply-constrained?

Two points:

1) Verizon is doing an LTE overlay. They are not shutting down their CDMA network anytime soon. Over the next 2-3 years we're going to see LTE/CDMA capable phones on Verizon. After that we might start seeing LTE only although it still makes sense to support CDMA for a fallback. If Apple wants to offer a Verizon/LTE phone in the next 2-3 years they will want to have CDMA support also. Making a 850Mhz CDMA variant isn't rocket science. Engineering a wold capable GSM phone is actually more complex from an RF standpoint.

2) LTE isn't going to take off overnight. Most consumers just don't know or care. CDMA speeds are good enough for most people right now. A CDMA phone launching today, replaced by an LTE/CDMA model in the future makes a lot of sense. It's probably good for 5-10 million sales minimum over the next 12-18 months.
post #30 of 62
Quote:
Originally Posted by Quash View Post

No T-mobile? This is Sacrilege!

Let's see here 35 million customers and the smallest 3G network or 95 million customers and the largest 3G network, which should Apple focus on?
post #31 of 62
Quote:
Originally Posted by BenRoethig View Post

Let's see here 35 million customers and the smallest 3G network or 95 million customers and the largest 3G network, which should Apple focus on?

It's not so simple. To add the AWS 3G band to the existing iPhone is basically trivial. The engineering effort to port the iPhone to T-Mobile USA is nominal. The current iPhones already work with T-Mobile GSM voice service as well as their EDGE data network.

To design, build, sell and support a CDMA iPhone requires far more resources: time, money, people. Plus, Apple needs a mobile operator that will agree to Apple's terms (e.g., music store, app store). Is Verizon willing to partner with Apple and give up what Verizon has historically tightly controlled?

Allegedly, when Apple was originally shopping around the iPhone, Verizon did not agree to those terms, hence Apple's focus on AT&T. Has Verizon come around? Only time will tell if Verizon will agree to Apple's terms.
post #32 of 62
Quote:
Originally Posted by BenRoethig View Post

Let's see here 35 million customers and the smallest 3G network or 95 million customers and the largest 3G network, which should Apple focus on?

Everything being equal, Verizon, of course. But everything isn't equal. An iPhone for Verizon will require a completely different phone because the cellular tech is completely different.

For T-Mobile, all they have to do is add a single chip for the 1700MHz band for 3GSM. In this image, it would be adding a 4th Triqient chip to the board. That's it, no additional licensing or other costly and complex scenarios that Qualcomm put on carriers and vendors that led to the creation of 3GSM in the first place.
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post #33 of 62
If this is true - and I believe it is not - I will be the first one to hammer Verizon when their network takes a dump due to the horde of data-hogging handsets. What goes around, comes around. Just wait. You read it here first.
post #34 of 62
Quote:
Originally Posted by cvaldes1831 View Post

[snip]
Allegedly, when Apple was originally shopping around the iPhone, Verizon did not agree to those terms, hence Apple's focus on AT&T. Has Verizon come around? Only time will tell if Verizon will agree to Apple's terms.
[/snip]

Not to question what you said, i wonder why they would make an offer to VZW in the first place....

While their service IS superior, releasing a CDMA-only phone at first would be a less sound of a decision considering the rest of the world mostly uses GSM...

I wonder if that rumor was just an educated guess, considering how Verizon crippled its phones in the past...



Dan
post #35 of 62
CDMA is dead technology. There will never be a CDMA iphone.
post #36 of 62
Quote:
Originally Posted by DayRobot View Post

Not to question what you said, i wonder why they would make an offer to VZW in the first place....

While their service IS superior, releasing a CDMA-only phone at first would be a less sound of a decision considering the rest of the world mostly uses GSM...

I wonder if that rumor was just an educated guess, considering how Verizon crippled its phones in the past...

You have to go back at least 5 years ago. CDMA was much stronger then. More people were using '2G'. There are many WCDMA/3GSM networks in the world that have CDMA for their '2G' connectivity.

You also have to consider Apple's position at that time. They had never made a phone. They had to get a carrier to take a chance on them and that was unlikely going to be the carrier with strongest position, at least not without crippling everything Apple wanted to do with the iPhone. Remember, they got contracts signed with no physical demo and weren't willing to let another carrier brand their HW, cripple their SW or control their ecosystem, something Verizon was very much a fan of at the time and has only changed because of the iPhone changing the playing field.

You also have to consider what is the best strategic move for Apple. Even if I had planned on going with a GSM-based device from the start it wouldn't hurt me and would greatly benefit me to get others interested. I would have gone to Verizon gotten positive feedback and used that as leverage against AT&T to curry a more favourable deal. That's just good negotiating.

On top of that, we only have Verizon's word on this and no idea when they first spoke to either carrier or who they first intended to go with.
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post #37 of 62
In other news Megatron is filing a suit claiming that Pegatron is attempting to confuse consumers be using a sound-alike name in order to take advantage of the good will currently associated with the Megatron brand.
post #38 of 62
"The report comes from DigiTimes, which has an uneven track record on Apple in general"

Name 1 - just 1 rumor DigiTimes has gotten right with regards to the iPhone in the last 3 years. They are batting an even 0% - Anything they say about the iPhone has been proven to be false. I can't believe you keep quoting them - it is shameful on your part.
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post #39 of 62
FOR THE MILLIONTH TIME! there is NOT going to be a CDMA iPhone! It's already proven.

Why do all the prototypes have a SIM tray?
Why does Apple and AT&T have a court document stating their exclusivity to end in 2012?
Why did Apple launch the iPad 3G+Wi-Fi with at&t's 3G network?
Why does Apple praise AT&T sooooo MUCH!

why are you guys still going around, wasting your time, doing these false rumors? they're annoying!
post #40 of 62
Quote:
Originally Posted by alexhasfun28 View Post

FOR THE MILLIONTH TIME! there is NOT going to be a CDMA iPhone! It's already proven.

Why do all the prototypes have a SIM tray?
Why does Apple and AT&T have a court document stating their exclusivity to end in 2012?
Why did Apple launch the iPad 3G+Wi-Fi with at&t's 3G network?
Why does Apple praise AT&T sooooo MUCH!

why are you guys still going around, wasting your time, doing these false rumors? they're annoying!

So true
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