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Original poster
Apr 12, 2001
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Just a day after reporting that its consumer electronics revenue would drop more than expected in the second quarter, perhaps due to weakening iPad mini demand, Apple manufacturing partner Pegatron has announced that it will boost its workforce by 40% in the second half of the year. The significant increase is fueling ongoing rumors of a lower-cost iPhone, as the firm has been reported to be handling production of the device.
Pegatron's Chief Financial Officer Charles Lin told Reuters on Thursday that 60 percent of the company's 2013 revenue would come from the second half.

He declined to comment whether the cheaper iPhone was among the new products to be made in the second half.
pegatron_logo.jpg
Pegatron is a longtime manufacturing partner for Apple, currently handling the iPhone 4S and iPad mini, although the majority of Apple's iOS device assembly is handled by the larger Foxconn. Pegatron currently employs 100,000 workers in its facilities, with yesterday's report indicating that the iPhone 4S and iPad mini each account for more than half of Pegatron's revenue for its communications and consumer electronics divisions respectively.

Article Link: Pegatron's Plans to Boost Workforce by 40%, Fueling Lower-Cost iPhone Speculation
 

ValSalva

macrumors 68040
Jun 26, 2009
3,783
259
Burpelson AFB
How much can really be gleaned from reports about third party parts suppliers? One moment Apple is booming and the next Apple is in the tank :rolleyes:
 

gnasher729

Suspended
Nov 25, 2005
17,980
5,565
"I suggest its good to question the accuracy of any kind of rumor about build plans. Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on."

-horse's mouth

The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?


Pegatron currently employs 100,000 workers in its facilities, with yesterday's report indicating that the iPhone 4S and iPad mini each account for more than half of Pegatron's revenue for its communications and consumer electronics divisions respectively.

The problem with reports like this is that they are quite useless. For all we know from this report, Pegatron might employ 99,000 workers building tractors, plus 500 each in the communication and consumer electronics division, of which 251 are working on iPhone and iPad mini components.
 

ihateilove

macrumors newbie
Feb 8, 2011
28
0
The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?

In context of course, Foxconn announced its own hiring blitz recently. TSMC reportedly now makes the processors. That's three data points. I suspect Apple's been planning this for a while, when you bring in a fourth data point -- record cap expenditure for last two years.

With Samsung out the game and Google reduced to its true status as an iOS user data hijacker with its apps, I'd take these data points as signs that Apple is preparing to really kick some **tt. We can't predict just what Apple has planned, but this is the first iOS release salvo in which Samsung hasn't had any insight into what's coming.

So I suspect things are gonna get waaaay interesting.
 

Amplelink

macrumors 6502a
Oct 8, 2012
934
392
The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?




The problem with reports like this is that they are quite useless. For all we know from this report, Pegatron might employ 99,000 workers building tractors, plus 500 each in the communication and consumer electronics division, of which 251 are working on iPhone and iPad mini components.

As a matter of logic, yes. But that given that Apple is one of Pegatron's largest, if not its largest, customer, additional inferences can be made.
 

ihateilove

macrumors newbie
Feb 8, 2011
28
0
As a matter of logic, yes. But that given that Apple is one of Pegatron's largest, if not its largest, customer, additional inferences can be made.

Absolutely: you can't state in one report that claimed slow iPad mini sales have impacted Pegatron's financial results while avoiding the importance of Apple to that company's business in another. A 40 percent increase in the size of the workforce just isn't going to be about a new BlackBerry. And don't forget the relatively recent WSJ report in which it was revealed that Foxconn is also on a similar recruitment drive.

This leads me to suggest that we aren't just looking at a product refresh, but new product families, in line with months of rumor and speculation.

The data points that we do have seem to suggest this. Particularly Apple's capital expenditure across the last two years. I hope Samsung is quaking in its figurative boots, as you don't need to be a Steve Jobs level genius to recognise that Apple will be doing its level best to hurt its faithless former partner.

I wrote this in my blog, there's a link in the sig.
 

jrswizzle

macrumors 603
Aug 23, 2012
6,107
129
McKinney, TX
Image

The Autobots won't stand a chance! (Sorry, I couldnt resist)


Megatron: "Do as I command and we will defeat the Autobots once and for all!"

Negatron: "No, not gonna work."

Megatron: "Gaw come on, what did we talk about!"

Negatron: "Autobots always win. You think Optimus Prime is gonna be dead dead, but then he's not dead."

Megatron: "I'm taking this from a robot that turns into a canoe?!"

Negatron: "When there's a battle on a gently moving river, you'll want me."
 

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charlituna

macrumors G3
Jun 11, 2008
9,636
816
Los Angeles, CA
All this for the new Nokia phone, I suppose :rolleyes:

Or the Sharp TVs the company is allegedly building.

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As a matter of logic, yes. But that given that Apple is one of Pegatron's largest, if not its largest, customer, additional inferences can be made.

Sorry but that logic still doesn't track. That historically Apple was the biggest client does equal that these must be employees for something for Apple. After all, there are all reports that Foxconn is trying to branch out so their eggs arent all in Apples basket. Perhaps this is part of that.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,504
31,823
But, but, but Bloomberg just told us the other day iPad mini demand is declining. :confused:

Also, when has any Apple supplier ever said publicly what percentage of their revenues come from Apple products?
 

gnasher729

Suspended
Nov 25, 2005
17,980
5,565
As a matter of logic, yes. But that given that Apple is one of Pegatron's largest, if not its largest, customer, additional inferences can be made.

My point is: The article gave information that is useless as it stands. If you have a reference that Apple is one of Pegatron's largest customers, I'd love to see it. But again, if Apple purchases 10.9% of Pegatron's goods, and there are another nine customers each buying 9.9%, then "Apple is the largest customer" isn't very meaningful. On the other hand, if Apple purchased 33% and someone else 67%, that would make Apple "by far the smallest customer" while Apple would be much more important to Pegatron.

What the article says: Apple makes more than half the revenue in two divisions. The number of divisions in Pegatron is unknown. The size of these two divisions is unknown. Therefore, all in all, the information is useless.
 

G4DP

macrumors 65816
Mar 28, 2007
1,451
3
"All hail Pegatron"

Analysts do make the strangest connections. It could be for any of their clients.

Next it'l be the price of Silver has shot up Apple must be planning an new device!
 

iGeek

macrumors newbie
May 14, 2003
16
4
I read this as "Pentagon" as in the Pentagon, and was very confused.
 

Thunderhawks

Suspended
Feb 17, 2009
4,057
2,118
The question is: Is Tim Cook the horse, or is Apple the horse and Tim Cook the horse's mouth?




The problem with reports like this is that they are quite useless. For all we know from this report, Pegatron might employ 99,000 workers building tractors, plus 500 each in the communication and consumer electronics division, of which 251 are working on iPhone and iPad mini components.

And 1 of the 251 is working on the new Mac Pro.

----------

I read this as "Pentagon" as in the Pentagon, and was very confused.

Nobody works there.
 

Millah

macrumors 6502a
Aug 6, 2008
866
515
In case you guys haven't seen Philip Elmer Dewitts article today, he did a "fact-check" on Bloombergs total BS article yesterday about Pegatron saying "lowering iPad Mini Demand."

Turns out, Pegatron said NO such thing whatsoever, and that clown from Bloomberg completely made it up and put words in Pegatron CEOs mouth. If you haven't seen PED's article, I'd suggest you go look at it. Philip did some excellent investigative work and emailed Pegatrons CEO directly.

http://tech.fortune.cnn.com/2013/05/09/apple-ipad-mini-pegatron-bloomberg/
 

Popeye206

macrumors 68040
Sep 6, 2007
3,148
836
NE PA USA
In case you guys haven't seen Philip Elmer Dewitts article today, he did a "fact-check" on Bloombergs total BS article yesterday about Pegatron saying "lowering iPad Mini Demand."

Turns out, Pegatron said NO such thing whatsoever, and that clown from Bloomberg completely made it up and put words in Pegatron CEOs mouth. If you haven't seen PED's article, I'd suggest you go look at it. Philip did some excellent investigative work and emailed Pegatrons CEO directly.

http://tech.fortune.cnn.com/2013/05/09/apple-ipad-mini-pegatron-bloomberg/

Everyone is looking for a headline! UGH! :rolleyes: Amazing for sure!
 
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