Apple Sends Increasing Component Orders to Pegatron; Snubs Foxconn
May 13, 2013 12:30 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: Interesting news
5/13/2013 1:02:32 PM
Guess I am wrong.
RE: Interesting news
5/15/2013 5:58:58 PM
I admit I was wrong, and get down rated. LOLOLOL!
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
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
Facebook to Add Auto-Play Video to NewsFeed for All Mobile Users
December 12, 2013, 9:35 AM
AT&T CEO Says Carriers Can No Longer Foot the Bill for High-End, Subsidized Smartphones
December 11, 2013, 10:55 AM
IPotty and iPad Tot Seat Ignite Controversy: Brilliant or "Destructive"?
December 10, 2013, 6:22 PM
Quick Note: Sleek White Second-Gen Nexus 7 Goes on Sale for $269
December 10, 2013, 4:55 PM
Illinois Considers Ban on Google Glass While Driving
December 10, 2013, 10:21 AM
EU to Nokia: Don't Even Think About Becoming a Patent Troll
December 9, 2013, 10:29 AM
Most Popular Articles
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Report: Windows 8.2 Revives Start Menu, Runs Metro Apps in Desktop Mode
December 10, 2013, 2:56 PM
U.S. Navy Fires "XFC" Drone from Underwater Submarine
December 6, 2013, 2:35 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information