Apple Supplier Pegatron Posts 22% Jump in Earnings

Posted March 24, 2014 at 2:38pm by iClarified | Please help us and submit a translation by clicking here | 3836 views

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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Add Comment
Orospo - March 24, 2014 at 5:46pm
I feel like it's going to be different quality screens. Like samsung and lg screen for the macbook pro retina. How did that turn out? One gives better colors than the other. Stick to one manufacturer dammit. We don't want to have two different quality iphones.
K - March 24, 2014 at 6:04pm
They have no choice, users been switching to samscum for bigger screen, what choice do they have?
Ftw!!! - March 24, 2014 at 3:07pm
Can't wait for the bigger screen. They came a long way in time after adding tons of features.
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