Suppliers have told Reuters that Apple is developing a cheaper model of the phone, broadening its sales base to lower-income buyers in growth markets such as China and India. A supplier source in Japan said small-scale production of the display panel for the model would begin in May, ramping up to mass production in June.
Reuters says that Apple is expected to launch the low cost iPhone in the third quarter of 2013. Notably, Pegatron President and Chief Executive Officer Jason Cheng said that revenue from communications products would amount for 40% of total revenue in the second half of the year compared to 24% in the first quarter.
"Making the cheaper iPhone will further help Pegatron's operating margin because its plastic casing is easier to make than iPhone 5's metal casing; this should ensure a good yield rate," said Fubon Securities analyst Arthur Liao.