Alleged hiring freeze at Pegatron prompts more doom-and-gloom speculation about Apple

Posted:
in General Discussion edited November 2015
Despite commentary from Apple itself indicating that the company is on track for a record setting holiday quarter, a hiring freeze at supplier Pegatron has fueled more speculation that interest in the company's products could be softening.




Saying that demand for Apple products "has waned considerably," China Daily reported on Tuesday that sales of the iPhone 6s have been "disappointing." This despite the fact that Apple itself indicated last week that iPhone sales are on pace to grow once again in the current December quarter, eclipsing the holiday 2014 period --?which was the company's best in its entire history.
Apple Chief Executive Tim Cook has repeatedly warned that reading into supply chain news is a mistake.
Tuesday's report includes quotes from a pair of ex-Pegatron employees who spoke of being overworked while with the supplier. One said he was afraid of being laid off after the alleged hiring freeze went into place.

For its part, Apple for years has warned observers not to read into supply chain data. In 2013, Cook said doing so would be a fool's errand, because his company's supplier network is so vast and complicated.

"Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant for our business," Cook said.

Despite those comments, such reports out of the Far East have persisted for years, often predicting doom and gloom for the Cupertino, Calif., based electronics maker. And yet Apple's overall sales and revenue have continued to grow, most recently to $51.5 billion in the just-concluded September quarter.

For Apple's current December quarter, the company has projected revenue between $75.5 billion and $77.5 billion, with gross margins between 39 and 40 percent. During the same period a year ago, Apple posted record quarterly revenue of $74.6 billion, with margins at 39.9 percent.

Beyond the iPhone 6s, this year's holiday product lineup also includes the recently launched Apple Watch lineup, as well as a new Apple TV and the upcoming iPad Pro. The company's 2015 debuts have also included the all-new 12-inch MacBook with Retina display; a 4K-resolution 21.5-inch iMac; refreshes to the 27-inch iMac, MacBook Pro, and MacBook Air lineups; an improved fourth-generation iPad mini; and a faster iPod touch.
«1

Comments

  • Reply 1 of 36
    Not getting, not really doom for the company if sales slow down, pretty sure the iPhone and other devices are doing pretty well overall.
  • Reply 2 of 36
    Now you're quoting the China Daily? This is a propaganda arm of the PRC, an even less reliable source than Katy Huberty or Gene Munster.

    Why in the world is ANYONE at AI giving space to Chinese propaganda without making that fact plain?
  • Reply 3 of 36
    MacProMacPro Posts: 19,521member
    Now you're quoting the China Daily? This is a propaganda arm of the PRC, an even less reliable source than Katy Huberty or Gene Munster.

    Why in the world is ANYONE at AI giving space to Chinese propaganda without making that fact plain? Really getting disgusted with the games here.

    Agreed. Click bait pure and simple.
  • Reply 4 of 36
    smaffeismaffei Posts: 237member
    But isn't the whole industry slowing down (insane growth isn't sustainable for long, it levels off)?
  • Reply 5 of 36
    After the Microsoft announcement today I predict another surge of iPhone sails. I have a Microsoft phone and the announcement makes me seriously think of getting an iPhone (had the 3g and 3gs before iphones got super popular).
  • Reply 6 of 36
    After the Microsoft announcement today I predict another surge of iPhone sails. I have a Microsoft phone and the announcement makes me seriously think of getting an iPhone (had the 3g and 3gs before iphones got super popular).

    What announcement?
  • Reply 7 of 36
    maestro64maestro64 Posts: 5,039member
    The issue it not Apple it all their other customers who's business is hurting because of Apple killing the market, Apple is health the competitors are in trouble.
  • Reply 8 of 36
    These protagonists should realize Apple is not the only customer of these assemblers so the possibility of one of the many other customers are having sales difficulties causing the hiring freeze. Just look at the recent quarterly of some of Apple's competitors, LG, Samsung, Nexus, etc.
  • Reply 9 of 36
    Quote:
    Originally Posted by SpamSandwich View Post





    What announcement?



    They Gimped one drive. took away the unlimited storage options, got rid of the 100 gig and 200 gig plans . anybody that had any of the promotions gets those taken away also. stuck with either office 365 1terabyte  or $2 a month 50 gig plan (which is more expensive then apples icloud plan ). A lot of die hard windows phone  fans are very upset. It might be the thing that finally has the rest of the userbase go to iphones (or android).

     

    It was just announced last night.

  • Reply 10 of 36

    They Gimped one drive. took away the unlimited storage options, got rid of the 100 gig and 200 gig plans . anybody that had any of the promotions gets those taken away also. stuck with either office 365 1terabyte  or $2 a month 50 gig plan (which is more expensive then apples icloud plan ). A lot of die hard windows phone  fans are very upset. It might be the thing that finally has the rest of the userbase go to iphones (or android).

    It was just announced last night.

    LOL! Even under the new guy they can't help but shoot themselves in the foot.
  • Reply 11 of 36
    Quote:
    Originally Posted by SpamSandwich View Post





    What announcement?

     

    Not sure exactly what he's referring to, but maybe this - http://www.forbes.com/sites/gordonkelly/2015/11/02/microsoft-confirms-unstoppable-windows-10-tracking/

     

    or this - http://gizmodo.com/microsoft-scraps-unlimited-onedrive-storage-and-cuts-it-1740232233

     

    Neither sounds particularly good, but maybe the first one would scare more people off.

     

    oops, research took too long and he already responded...

  • Reply 12 of 36
    AI, you're actually worse than the financial and tech press that you (rightfully) take to task for their misleading coverage of Apple. What makes you worse is that you decry what they do, while at the same time running the same "Apple is doomed" clickbait headlines from totally dubious sources, as if noting that "this source is usually unreliable" somehow makes the running of the headline okay.

    I'm tired of the bs here... Bye Felicia!
  • Reply 13 of 36



    Build it, they will come!

  • Reply 14 of 36
    rogifanrogifan Posts: 10,669member
    Why not report Pegatron's response which is that they're moving production to another city and employees who choose not to move will be let go.
  • Reply 15 of 36
    sflocalsflocal Posts: 6,016member
    Now you're quoting the China Daily? This is a propaganda arm of the PRC, an even less reliable source than Katy Huberty or Gene Munster.

    Why in the world is ANYONE at AI giving space to Chinese propaganda without making that fact plain? Really getting disgusted with the games here.

    I picture AI brass getting together every day and asking "What can we put out there for web clicks?"

    Quoting anything from China Daily just reaffirms that belief.

    Shameful.
  • Reply 16 of 36
    calicali Posts: 3,494member
    Now you're quoting the China Daily? This is a propaganda arm of the PRC, an even less reliable source than Katy Huberty or Gene Munster.

    Why in the world is ANYONE at AI giving space to Chinese propaganda without making that fact plain? Really getting disgusted with the games here.

    Yeah this is troll food and helps advertise these sources. Once these troll articles get popular it makes them harder to reverse and the source becomes famous, like Bendgate.
  • Reply 17 of 36
    512ke512ke Posts: 782member
    There is a fine like between reporting misinformation and propagating it.
  • Reply 18 of 36
    damonfdamonf Posts: 227member

    On the other end of the spectrum, there's now this headline at 9to5Mac:

     

    "Apple’s planned manufacturing spend suggests a huge holiday quarter – Morgan Stanley"

  • Reply 19 of 36
    damonf wrote: »
    On the other end of the spectrum, there's now this headline at 9to5Mac:

    "Apple’s planned manufacturing spend suggests a huge holiday quarter – Morgan Stanley"

    Analysts come with their own set of ethical quandaries.
  • Reply 20 of 36
    mac_128mac_128 Posts: 3,454member
    It's time for Apple to take chapter from Willy Wonka, and bring all manufacturing behind closed doors -- build everything they need from raw materials, and hire Oompa Loompas to do all the work for them. ;-)
Sign In or Register to comment.