Report says low-cost Apple iPhone to be produced by Pegatron

Report says low-cost Apple iPhone to be produced by Pegatron
Apple and Foxconn together, is a combination that has worked well for both companies. But according to a published report on Wednesday, Apple CEO Tim Cook is turning to another contract manufacturer to produce the oft-rumored low-price version of the Apple iPhone. Not that Pegatron is a total unknown to the handset, as the company did assemble some Apple iPhone models back in 2011.

Some close to the situation say that Apple wants to diversify its production as a hedge against a repeat of last year. In 2012, some units of the Apple iPhone 5 that came from the Foxconn factories were sold to end-users with scratches on the casing. In addition, it seems that Pegatron is willing to manufacture the device for a smaller profit than Foxconn is seeking. The latter has had to spend more money to improve working conditions at the company. Pegatron has managed to escape the same scrutiny that Foxconn is constantly under, although that might change with Apple giving the company more work.

Pegatron's Q1 revenues amounted to $219.1 billion NTD ($7.4 billion USD). That compares with Foxconn's revenue of $809.1 billion NTD ($27.3 billion USD) for the same period. But that doesn't mean that Pegatron can't grow. With 100,000 employees in China and Taiwan, the company plans on expanding its work force by 40% in China over the second half of the year. That alone is a pretty good sign that Pegatron is doing something related to Apple over the last 6 months of the year.

Apple might be taking a risk by moving some production of even a new iPhone variant to Pegatron. Last year, Apple gave the contract manufacturer some business by having the company manufacture some units of the Apple iPad mini. But yields were low and Apple gave some of the business back to Foxconn. Pegatron CFO Charles Lin says, "There's a learning curve for any new products, so our yield rates are increasing." Meanwhile, Apple has yet to introduce a low-priced version of the Apple iPhone although at D11 last night, Apple CEO Tim Cook left the door open a crack to the idea that Apple might produce two new versions of the iPhone in one year.

source: WSJ



1. ZeroCide

Posts: 816; Member since: Jan 09, 2013

I bet Foxxcon is not too happy about this.

18. gmracer1

Posts: 646; Member since: Dec 28, 2012

I bet the workers are, though! Those people work their a**es off!

2. donjunior

Posts: 50; Member since: May 28, 2013

iphone is always a cheap outdated phone. Galaxy is the new iconic brand. :)

3. rantao333

Posts: 346; Member since: May 21, 2013

only the clueless mind would say that

5. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

He has a point. Not one feature on the iPhone is unique when compared to the competition. Unless you call having the smallest screen a unique feature.

7. rantao333

Posts: 346; Member since: May 21, 2013

what unique features do u really need? 1. Eye scrolling? 2. Air gestures/air view? 3. Multi windows? / " Multitasking under droid terms" 4. Dual camera? 5. Extreme customization/ Extreme setting available? 6. 18 hours talk times? Iphone do things right out of the box, after so many years, its doesn't gv u the "wow" effect instead of improving the user experience which many "smart" users dont like about it. 1. Iphone shot the best photo under point & shoot condition, unless u love to tweak every time u shoot. w w 2. Iphone provide the industry leading screen, w w 3. Iphone provide one of the most longevity battery life under user workload w w 4. Iphone provide the most fluid touch screen experience 5. Iphone provide one of the best speaker/ microphone w w All these sources are from professional reviewer which each one is expert under their respective field. not from gsmarena, phoenarena, the verge, etc where they constantly feed u with marketing trash. Stop believing what these websites trying to tell u coz they just want to brainwash consumers.


Posts: 4851; Member since: Apr 13, 2012

Cause the OS was half, not matured, didn't takeor needed to much resources. An app launcher device that swipes left to right. Fake bogus multitasking. Apple already has brainwashed all the average joes, unsmart innocent consumers thinking wow Apple is GOD. My foot. No bluetooth saved apple 5$, cheap shattering glass, cost them 2$ to buy, when broken they charge you 50$. Apple made 500millions in just repairs. What's next, the list continues..... another brainwashed fanboy siding Apple. You they are a disgrace to society and humans. ™®©

10. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Dude it's just an electronic device calm down man. None of these devices can do a thing without human interaction. I think you need a Valium.


Posts: 4851; Member since: Apr 13, 2012

Dark i'm cool™ Anyway how's you been? When you getting married? Where's honeymoon! ®

13. rantao333

Posts: 346; Member since: May 21, 2013

come on, stop bashing without concrete facts and prove, u can say whatever u like and only the ppl without thinking may fall into ur lies. regarding the multitasking 1. Apple do let u multitasking depend on situation, AND THESE SITUATIONS APPLIED 90% OF THE TIME WHEN U ARE USING "SMART PHONES' Not PC 1. GPS 2. Music Player 3. news feed . voip 4. downloading stuff. the only downside i may agree is IOS doesnt allowed websites to load whenever u switch out.

19. gmracer1

Posts: 646; Member since: Dec 28, 2012

Ah yes...another clueless fanboi. So you're totally fine with paying more for a lesser device? You're quite ignorant. If you had the choice between a Bugatti Veyron and a Honda Civic, and they both cost the same, which would you get? Wait, lemme guess: You don't appreciate bang-for-buck. You'd take the Civic. If you want a 'smart'phone, then why get an iPhone? Subtract the hype, subtract the advertising, and subtract brand names. Compare features and specs, and then compare prices. If you'd still take the iPhone, you are a complete fool.

9. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Your opinion, but not a smart one. When something becomes iconic it never loses that designation. Some of you samsungers are pitiful in your attempts to bash apple, while they rake in billions.

15. EXkurogane

Posts: 863; Member since: Mar 07, 2013

Somehow i suspect donjunior = wendygarrett; the comment style, choice of words, seem to indicate so. It does not take a detective to notice it.

17. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Somehow I think you're rite on the money. +1

4. Timmehor

Posts: 599; Member since: Mar 09, 2013

I really don't mind the cheaper aletrnative of the iPhone, it will interest more people into Apple who cannot afford the rather expensive Apple iPhone.

6. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

So having a iPhone 4 free on contract is not cheap enough? In a few months the iPhone 4s is going to get the same treatment. And how many cheapskates want to pay over $200 off contract for a crappy phone like the 3GS? Apple will not release a desirable phone at Nexus 4 prices. Apple prides itself on ripping people off on each phone sold. Maybe release a crappier phone overseas but don't release that crap in the US. Just markdown the iPhone 5 to $100 and the iPhone 4s to free. Why change now?

11. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

I bet you typed this comment from your 3GS

14. MachDaddy

Posts: 52; Member since: Mar 06, 2013

I still use a 3Gs...not the worst phone in the world. Sure, it's comparatively slow, but the display is pretty solid and it runs the latest version of iOS with no issues (minus Siri and a few other touches). And other than intensive video games, it runs every app I throw at it without a problem and is still very useful. The only things that get me down are the slow processor and the crappy camera, but the reality is that I have a fully functional smart phone in 2013 that was first released in June 2009! Oh, and yes I am completely sick of the UI and can't wait to get a new phone, most likely a sweet android so I can change how the damn things looks when I get bored of it!

16. FlushGordon unregistered

Soo pointless...unless it's a sub $200 phone....knowing Apple, their own definition of "low cost" is most likely between $400-$450

20. PhoneCritic

Posts: 1359; Member since: Oct 05, 2011

Guys I think you are all missing the point of what is going on here with Apple moving from supplier to supplier. We have been looking at it in the wrong sense of Apple devices being better or worst then Samsung devices. But the key to look at here is Capacity and Components. Samsung Is actually the big winner here. It will win the mobile war against all other companies Apple, Nokia, HTC, Sony, etc why? Looking at it closely I realized they manufacture mostly all of their own components that go into making any Cellular device and they have the most capacity at yielding large volumes. OLED screens, Flash Memory, DDR memory, CPUs etc... Samsung has a legal strangle hold on Capacity and Manufacturing components. HTC, Apple Motorola, are all finding this out now. You want large volume yields you go to Samsung ( they produce more than TCSM, LG,Sharp combined). If they continue selling their devices in large volumes as they are then that means a shortage of components and capacity for everyone else. How did it get this way? Samsung flew under the radar by investing their billions on capacity while Apple, Nokia, LG etc... just horded their billions and made no investments in any manufacturing. Samsung is playing the game like a champ Just by all the trade routes and even if your competitor has goods to sell he can't unless he pays a fee to use your routes. I maybe wrong but this is the pattern I am seeing that is slowly emerging

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