Apple Supplier Pegatron Posts 22% Jump in Earnings

Pegatron, the manufacturer of the Apple iPhone 5c and iPad mini, posted a 22% jump in earnings today, reports the WSJ. The increase is attributed to the company's growing role as a supplier for Apple.

Apple has increasingly sought out production partners beyond its primary manufacturer Hon Hai Precision Industry Co., also known as Foxconn, in an effort to secure production capacity for an expanding range of products. Taiwan-based Pegatron has been the main beneficiary, but Apple has also begun to work with some other manufacturers, as reported previously in The Wall Street Journal.


At an investor conference on Monday, Pegatron CEO Jason Cheng said, "While PCs will still be around, mobile devices are a faster growing sector, and we want an even balance between the different parts of our business."

Apple reportedly accounts for about 40% of Pegatron's revenue now. Pegatron initially suffered from low yield rates; however, its operating margin inched up to 1.9% in Q4 from 1.6% a year earlier.

The company is also rumored to have landed a contract to manufacturer half of Apple's iPhone 6 orders. More details here.

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