Pegatron to Boost Production Capacity Following Strong iPhone 6 Demand

Pegatron is reportedly expanding its production capacity following strong demand for the Apple iPhone 6, reports Nikkei.

On Monday, Pegatron's Chief Executive Jason Cheng told investors his company expects to complete 2014 with $200 million in capital expenditure, and that the figure for next year will rise to $300 million. Cheng's statement came as Pegatron, the Apple supplier believed to be responsible for iPhone 6 production along with Foxconn Technology Group, saw revenue from its communications products grow 10% year on year and net profit surge 92% to NT$4.7 billion ($153 million) in the July to September period - the same quarter the U.S. tech giant began shipping the iPhone 6.

It's also rumored that Apple might move some iPhone 6 Plus production to Pegatron as Foxconn has reportedly been struggling to cope with the demand. Foxconn has implemented large-scale hiring at its plants in Shenzhen and Zhengzhou, China to find enough workers to supply Apple with devices ahead of the holiday season.


Despite Pegatron's success with Apple, its overall revenue year-over-year is down 6.8% due to a slowdown in its core computer business. It's income from computer products dropped 30%. In addition, revenue generated by consumer products including tablets and LCD televisions also fell 18%.

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