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Apple reportedly placed order for 15M next-gen iPhones from Pegatron

post #1 of 35
Thread Starter 
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.
post #2 of 35
I am so over the iPhone speculation - get release it so I can buy the damn thing already
post #3 of 35
Quote:
Originally Posted by Hugh Jarse View Post

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.
post #4 of 35
Pegatron Should definitely help Apple to overcome supply problem, although most of the time it was the display panel that was short of supply rather then Foxconn not able to keep up with production.

There are only two kind of people in this world.

Those who dont understand Apple and those who misunderstood Apple.

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There are only two kind of people in this world.

Those who dont understand Apple and those who misunderstood Apple.

Reply
post #5 of 35
I recently picked up an iPhone 4 for my wife. While it is a great phone, she still has problems with the proximity sensor and is constantly pressing the mute button or some other button with her cheek. I wonder if that was ever fixed by Apple.

Still, since she got the iPhone 4, I will buy the next one for myself, so I am looking forward to it.
post #6 of 35
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.
post #7 of 35
Quote:
Originally Posted by Splash-reverse View Post

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.
post #8 of 35
Quote:
Originally Posted by Hugh Jarse View Post

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.
post #9 of 35
Quote:
Originally Posted by AppleInsider View Post

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?
post #10 of 35
I hear Pegatron will take over leadership of the Decepticons in Transformers 4.
post #11 of 35
Quote:
Originally Posted by MacApfel View Post

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.
post #12 of 35
Quote:
Originally Posted by NasserAE View Post

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.
post #13 of 35
15 moooyun? Cooorrrrr....
post #14 of 35
Quote:
Originally Posted by Hugh Jarse View Post

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?
post #15 of 35
Quote:
Originally Posted by success View Post

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...
post #16 of 35
Quote:
Originally Posted by success View Post

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.
post #17 of 35
Quote:
Originally Posted by Splash-reverse View Post

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.
post #18 of 35
Quote:
Originally Posted by mikemikeb View Post

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.
post #19 of 35
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
I APPLE THEREFORE I AM
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I APPLE THEREFORE I AM
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post #20 of 35
Quote:
Originally Posted by NOFEER View Post

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.
post #21 of 35
I know I'm biased because I want to buy the next iPhone and hence want major changes to make the purchase feel more worthwhile, but I feel like after such a long wait between iPhones and with the market catching up, Apple would do well if they could release a major update rather than something minor.

I'm almost certain it'll be marketed as iPhone 5 regardless.
post #22 of 35
The original poster has a good question. He may not be looking for the technical answer anyways but rather wants a handle on the mental state of people so wrapped up in new iPhone versions. IPhone is a very nice little device but the way some people's lives hang on every release you would think it is the way to world peace or personal salvation.

Just to be clear it IS NOT the way to anything significant. Rather it is a simple communicative pocket computer - nothing more.
Quote:
Originally Posted by hobBIT View Post

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...
post #23 of 35
Either you need an iPhone or you don't. Every iPhone I've owned has been worthwhile.
Quote:
Originally Posted by jakevin. View Post

I know I'm biased because I want to buy the next iPhone and hence want major changes to make the purchase feel more worthwhile, but I feel like after such a long wait between iPhones and with the market catching up, Apple would do well if they could release a major update rather than something minor.

I'm almost certain it'll be marketed as iPhone 5 regardless.

Would it make any difference what they called it? With the attitude seen in this thread they could call it iPad Light Days and still sell millions.
post #24 of 35
Quote:
Originally Posted by jakevin. View Post

I know I'm biased because I want to buy the next iPhone and hence want major changes to make the purchase feel more worthwhile, but I feel like after such a long wait between iPhones and with the market catching up, Apple would do well if they could release a major update rather than something minor.

I'm almost certain it'll be marketed as iPhone 5 regardless.

Since they're releasing iOS5, it's very unlikely they would avoid the brand-name synergy and name it "iPhone 4S".

Remember, the 3GS was only named in that matter because it couldn't be called the "iPhone 4"; the "3GS" was actually the iPhone 3, since the "3G" was really the second iPhone.
post #25 of 35
Quote:
Originally Posted by hobBIT View Post


Wouldn't it make more sense to have an iPhone 4, 4S and 5?

The 3Gs will definitely get the axe. By the time the next handset is released, the 3Gs will be 2 years and 3 months old. I know they support iOS5 on the 3Gs, but they will kill it off. If they need to keep a less expensive phone around, then it will be the 4.

As for a 4s+5 strategy, I really don't think so. There is no reason for Apple to release two new yet different phones at the same time. Ramping up one and keeping it a secret is challenging enough. They will keep it simple and release only one new phone.

Also, if you are speaking literally about product names and think they will have an actual 4s and a 5, there is no way. The next phone coming (apparently this September) is the 5th generation iPhone, and therefore is the only one that could be accurately named the iPhone 5. If it is called something else, then they lose this window of opportunity. If they were to release a 4s or whatever this fall, and then next year release an iPhone 5, Apple would become the company that can't count. And Steve and Phil and Tim would never allow this to happen.
post #26 of 35
Quote:
Originally Posted by hobBIT View Post

Should Apple still keep the iPhone 3GS around after September?

That's what the latest "analysts" based rumor is saying. Could be a good idea, but at the same time it means they'll have to keep supporting the 3GS on iOS 6 which could hinder the amount of innovation and advancement in the operating system. Also the 3GS doesn't have facetime so it can't connect the other millions of Apple devices with the technology.

Quote:
Originally Posted by hobBIT View Post

Wouldn't it make more sense to have an iPhone 4, 4S and 5?

That would be redundant. They don't need a 4, 4S, and 5. All those phone would be about the same price and wouldn't be that functionally different. The whole point of adding models is for each to have a unique place in the market and to appeal to a certain demographic that the other may not appeal to as much. A 4, 4S, and 5 would all likely appeal to similar buyers.

If Apple wants to add another model it should be a low end model to appeal to 1st time smart phone buyers switching from feature phones and younger buyers. This is where an "iPhone Lite" or constantly rumored "iPhone Nano" comes in.
post #27 of 35
Quote:
Originally Posted by hobBIT View Post

Wouldn't it make more sense to have an iPhone 4, 4S and 5?

No. (Here we ago, again.)

Last year Steve took the stage and announced "the iPhone 4, with the A4 chip, running iOS 4."

This year, he will take the stage and announce "the iPhone 5, with the A5 chip, running iOS 5."

Any guess as to what he'll announce next year? How much does Steve like simplicity, mmm?

The iPhone "4S" moniker is a completely ludicrous rumor.
post #28 of 35
Quote:
Originally Posted by mikemikeb View Post

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.

An iPhone with an edge to edge 3.5" display sounds like a nice idea, especially if it was sold alongside an iPhone with a 4" edge to edge display

I don't think we'll see a 2G iPhone ever again but we'll probably see a China-spec 3G model come out exclusively for that market.
post #29 of 35
Quote:
Originally Posted by DJinTX View Post

Also, if you are speaking literally about product names and think they will have an actual 4s and a 5, there is no way. The next phone coming (apparently this September) is the 5th generation iPhone, and therefore is the only one that could be accurately named the iPhone 5. If it is called something else, then they lose this window of opportunity. If they were to release a 4s or whatever this fall, and then next year release an iPhone 5, Apple would become the company that can't count. And Steve and Phil and Tim would never allow this to happen.

I think he's saying that they'll unveil both a higher spec iPhone 4 and a redesigned iPhone 5 at the same time this fall. That rumor has floated around here a little bit in the past few weeks.

It's not a bad rumor, but it's just in my opinion not necessary from a marketing standpoint. A 4, higher spec 4S and newer sexier 5 would likely all appeal to the same customer, so Apple would see diminishing returns having all of those phones available.

The whole point of adding another model is expanding the iPhone's market appeal to new demographics where the iPhone currently isn't successful (obvious answer is the low-mid range of the smartphone market).
post #30 of 35
Quote:
Originally Posted by jakevin. View Post

Oh, there's plenty of things wrong with Foxconn, although I'm sure this new supplier would have similar ethical issues.

Sigh. For the record ... there has never been any evidence (at least so far), that Foxconn is any better or worse than the average North American manufacturing plant with the exception of wages and unions. The workers get low wages by North American standards, but high wages relative to the rest of their economy. Foxconn is one of the best places to work in the Chinese manufacturing sector.

Sure management pushes the envelope in terms of worker safety and exposure to dangerous situations and materials, but I've got news for you ... this happens in Europe, North America, and pretty much everywhere else too.

It's called non-union work.
post #31 of 35
Quote:
Originally Posted by jakevin. View Post

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.

According to my sources the focus will be on the hardware since the software got its moment to shine at WWDC.

The plan at the moment is to send out announcements to the press on the Wednesday after Labor Day for an announcement the following Tuesday. iOS 5 will release the next day with the actual hardware going on sale on Saturday with no pre-orders or reservations same as they did for the ipad 2.

Oh and for those wondering, there will be no LTE. And at this point it will not be a 'world' phone although there is strong talk that they are planning to include proper T-Mobile support if the legalities work out in time (this and the earthquake are the reasons for the Sept shift)

As for the ipod touch, the current plan is to save it for closer to the holidays. It will be essentially the same as the current line up in terms of no 3g etc. But it will have a new (approximately) 5 inch form making it more suited for games and such


Quote:
Originally Posted by hobBIT View Post

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.

First off, there is no iphone 4s followed by an iphone 5. Starting last year they decided on a flat number system. This year is the iphone 5, next the iphone 6 and so on. And aside from the more memory option, the above is correct. The memory is staying the same because they are leveraging iCloud as your 'additional storage'

Quote:
then you will also get more screen real estate,

50/50 but the talk is not until the iphone 6 if at all.

Quote:
a new design (reportedly 'tapered'),

They were LTAO at that one. No. It will not be tapered and it will not be ipod touch thin (no room for all the components)

Quote:
maybe RFID and perhaps more color choices other than black or white.

No NFC/RFID this time and if they change colors it will be to go back to silver. You want a color other than black or white, buy a case. Colors just aren't popular enough to justify whole lines to them.

Quote:
If you are very lucky maybe even a new screen technology with better outdoor visibility, viewing angles and less power consumption.

These things are always in the works. There were tests for new glass that wasn't as glossy, don't know any results. but that would be a step in the right direction if they passed the QC

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #32 of 35
Quote:
Originally Posted by wizard69 View Post

Just to be clear it IS NOT the way to anything significant. Rather it is a simple communicative pocket computer - nothing more.

95% of what people obsess about could be categorized that way - all of sports for starters, all movies, all books, all art of any kind. It's better to obsess about silly things that mean nothing in the greater scheme of it than to not get excited about anything.
post #33 of 35
Quote:
Originally Posted by charlituna View Post

These things are always in the works. There were tests for new glass that wasn't as glossy, don't know any results. but that would be a step in the right direction if they passed the QC

I can't really see what they can do there, materials with a substantially lower RI also tend to have low hardness. They can add a texture to the screen but that introduces a slight blurring, which is why consumers have tended to prefer Glossy screens over matt.

They can add an anti-reflective coating but that's just flat out horrible, scratches then stand out like neon lights on the surface, and there's generally a slight colour bias.
post #34 of 35
Quote:
Originally Posted by BestKeptSecret View Post

I recently picked up an iPhone 4 for my wife. While it is a great phone, she still has problems with the proximity sensor and is constantly pressing the mute button or some other button with her cheek. I wonder if that was ever fixed by Apple.

Still, since she got the iPhone 4, I will buy the next one for myself, so I am looking forward to it.

I think that that problem was fixed in general. In your wife's case, she may have a defective unit.

Either way, a trip to the Apple Store should rectify the situation.

Thompson
post #35 of 35
Quote:
Originally Posted by nvidia2008 View Post

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.

For many years now, Tim Cook has been the operations guru at Apple. Not Steve. Steve is a visionary that drives new product strategies, years down the road. Without him, we may see a difference 3 - 5 years out.

But with respect to the topic of your choosing, i.e. production and execution, Apple is very much in the best hands out there with Tim Cook. Even Steve has remarked about that in interviews. Tim Cook is the bomb in terms of operation, and everyone out there knows it.

Thompson
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