Apple Sends Increasing Component Orders to Pegatron; Snubs Foxconn
May 13, 2013 12:30 PM
Pegatron already makes older iPhone models for Apple (the iPhone 4 and iPhone 4S) and even the iPad mini
Hon Hai Precision Industry Co. Ltd (better known as Foxconn) has been Apple's go-to electronics manufacturer for devices like iPhones and iPads, but there's a new player in town that seems to be snatching some orders from the tech giant.
Pegatron, a Taiwanese manufacturer, already makes older iPhone models for Apple (the iPhone 4 and iPhone 4S) and even the iPad mini, but rumor has it that Apple is sending more orders toward Pegatron's way as Foxconn is struggling to grow.
Pegatron, which is only a quarter of Hon Hai's size (by revenue), recently announced that it will increase its number of workers in China by 40 percent in the second half of this year. Many believe it will be responsible for making a cheaper version of the iPhone.
Pegatron could continue to push Hon Hai aside when it comes to Apple manufacturing because it offers competitive pricing. Long term, Pegatron could offer more components and catch up on margins.
Foxconn receives about 60 to 70 percent of its revenue from making Apple's gadgets. However, as Samsung continues to grow and its Android-powered devices become more popular, Foxconn has stumbled upon decreasing margins. Also to blame for lower margins is rising labor costs after Foxconn got in trouble for its poor working conditions and low pay.
The proof is in
Hon Hai's first quarter earnings
for this year. Hon Hai posted sales earnings of T$808.87 billion ($26.96 billion USD) for the quarter ended March 2013. This was a drop from T$988.34 billion in Q4 2012 and a further decline from T$1 trillion in Q1 2012.
Apple, while sitting on $145 billion in cash,
has seen better quarters
as well. For Q2 2013 that ended March 30, Apple posted a net profit of $9.5 billion ($10.09 per diluted share). However, profit was down 18 percent compared to the same period last year; this was Apple's first year-over-year profit decline in nearly 10 years. Revenue came in at $43.6 billion, which was a boost from $39.2 billion in the year-ago quarter.
Analysts expected around $10.07 per share on revenue of $42.5 billion.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Apple's Q2 Earnings Slightly Exceed Analyst Expectations, Sees First YOY Profit Drop in a Decade
April 23, 2013, 4:41 PM
Hon Hai Posts Disappointing Q1 Earnings Due to Weaker iPhone Demand
April 10, 2013, 9:17 AM
Do you hate to do yard work?
October 20, 2016, 5:00 AM
Smart Technology Mood Collar To Understand Your Dog’s Emotions
October 17, 2016, 5:00 AM
iBeat: A heart monitoring smartwatch that can save lives by Monique C. Bethell, Ph.D
October 8, 2016, 10:25 AM
How Difficult it is to Buy Electronics
October 7, 2016, 6:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Most Popular Articles
Problems with Windows 10 – Update Now
October 15, 2016, 7:30 AM
Comcast Fined $2.3 Million for Trumped-Up Charges
October 13, 2016, 5:00 AM
IBM – Cloud Object Storage Cheaper than Amazon S3
October 14, 2016, 5:00 AM
Paralyzed Race Car Driver Recieves Nevada License
October 12, 2016, 5:00 AM
Researchers Move Closer to Breakthrough Gene Therapy to Cure Sickle Cell
October 14, 2016, 5:00 AM
Latest Blog Posts
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
IBM Bolsters Social Services Sector With Technology Grants
Oct 11, 2016, 5:00 AM
Scientists Sound Alarm on Climate but US Still Toys With Skepticism
Oct 10, 2016, 5:00 AM
IMEX America Trade Show
Oct 9, 2016, 10:00 AM
Phone Wars – Google VS Samsung Free Gifts on Purchase
Oct 6, 2016, 5:00 AM
Member of Parliament’s opposition car exploded in Tbilist capital of Georgia
Oct 5, 2016, 2:52 PM
US Government Cuts Cord On Internet Oversight
Oct 3, 2016, 10:34 AM
Are farm children less likely to have allergies and asthma in adulthood?
Sep 30, 2016, 5:00 AM
MH 17 shot down by missile 'brought from Russia' into Ukraine's rebel territory
Sep 29, 2016, 5:00 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information