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Rumors of low-cost iPhone rekindled as Pegatron said to hire additional 40K workers

post #1 of 15
Thread Starter 
Taiwanese electronics manufacturer and Apple supplier Pegatron plans to bolster its Chinese workforce by up to 40 percent in the second half of 2013, fueling speculation that low-cost iPhone is on the horizon.

Less than a day after Pegatron forecast poor second quarter performance due to a reported slowdown in iPad mini demand, Reuters received word of the company's Chinese staffing boost on Thursday. With on-hand employees already numbering 100,000, a 40 percent increase suggests an inordinate increase in output, and one of the main contenders for causing such a bump in volume is a cheaper version of Apple's iPhone.

iphone
Supposedly leaked rear shell of rumored low cost iPhone. | Source: Tactus


The publication goes on to say that a source at a Japanese supplier said the rumored handset's display would begin small-scale production in May ahead of a ramp up scheduled for June. Apple's purported "low cost iPhone" model is expected to sport the same 4-inch panel used in the current iPhone 5.

Pegatron CFO Charles Lin said 60 percent of the firm's 2013 revenue would come from the six months after June, but he declined to specify what products were being planned aside from new computer models using Intel's Haswell CPUs.

On Wednesday, however, CEO Jason Cheng told investors that revenue from communication product orders would make up 40 percent of total revenues for the second half, up from 24 percent for the first quarter.

The new information lines up with analyst Ming-Chi Kuo's expectation that Pegatron will be responsible for a bulk of the low cost iPhone's production, a result of Apple's attempts to diversify its supply chain.

Apple is widely rumored to launch a less expensive handset to compete in the high side mid-tier smartphone range, slowly pushing the iPhone into new market segments.
post #2 of 15

Supplier Win

Android Doom

post #3 of 15
http://www.beergame.org/

Outsiders who have no clue, reporting for the sake of reporting will only look like idiots...
post #4 of 15
Wow, you really meant 40k/40,000!
post #5 of 15

Ah, the roller coaster of Apple supply chain rumour-mongering.

Demand is down! Demand is Up! Oh no, it's down again! But then it's up again! Wheeeeeee!

Keep your arms inside the car at all times, please.

post #6 of 15
I'm sorry but I call BS. If you couldn't afford a new iPhone or didn't need the latest/greatest then there was always last year's model or prior.
post #7 of 15
ipod touch with phone functionality with LTE is the cheaper iphone. As simple as that. iphone with plastic unibody its not elegant. Apple make us proud of you. I love my ipad, iphone 5 & ipod touch aluminun unibody...
post #8 of 15
Let's see. So one rumor is that Pegatron is hurting due to a drop in order from Apple while another rumor says that Pegatron is ramping up for Apple.

It's part of the analyst two-step. Make predictions that are all over the map - and then after the dust settles, highlight the one that you got 'correct' while ignoring the 10 that you got wrong.
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post #9 of 15
Quote:
Let's see. So one rumor is that Pegatron is hurting due to a drop in order from Apple while another rumor says that Pegatron is ramping up for Apple.

 

Different time periods.

 

  • One rumor was for a supposed second quarter iPad mini slowdown.  
  • The other rumor is for a third quarter "cheap iPhone" ramp up.

 

However, the Pegatron CEO has come out and said that the first slowdown rumor is bogus.

post #10 of 15
Are we for certain these hires are for a cheaper iPhone and not the next gen. iPad Mini?
post #11 of 15
There added jobs are obviously for non Applw clients. Positive news!=Apple. Negative news=Apple.
post #12 of 15
Quote:
Originally Posted by Abobrek View Post

Are we for certain these hires are for a cheaper iPhone and not the next gen. iPad Mini?

Of course not.

 

Good point.

post #13 of 15
Originally Posted by AppleInsider View Post

Pegatron CFO Charles Lin said 60 percent of the firm's 2013 revenue would come from the six months after June ...

 

What Mr. Lin didn't say: "And that revenue ain't coming from any damn Amazon 3D phone."

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post #14 of 15
If it has same 4 inch display well then the A5 might be a A4 in it then and instead 5 and VGa 3 and VGA, yay right they will save money with the 3.5 inch
post #15 of 15
Stupid rumor; Pegatron's Products: Motherboards, Graphics cards, Laptops, Netbooks, Smart phones, Game consoles, Set-top boxes, Cable modems (from Wiki)

So if they're hiring people it could be for other products.
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