Cheap version of iPhone Will Made In Pegatron

Apple and Foxconn are two major companies that has worked well. But according to reports from the Wall Street Journal reported on Wednesday (29/05/2013), Apple CEO Tim Cook will shift production to other  iPhone manufacturers named Pegatron. Pegatron Corp. has been appointed as the main assembler of cheap version of the iPhone which is projected to go on sale this year.

But under the Tim Cook as CEO today, Apple is trying to bring about a more balanced supply chain, by providing more roles to a relatively little-known supplier, Pegatron Corp. is one of them. Pegatron is not a huge company like Foxconn. Pegatron Q1 revenues amounted to USD $ 740 million, while Foxconn earned revenues of USD $ 27.3 billion in the same period. But this does not mean that Pegatron could not grow. With 100,000 employees in China and Taiwan, Pegatron plans to increase the workforce by 40% in the Chinese during the second half of this year. It can be a pretty good sign that Pegatron doing something related to Apple over the last 6 months.

What exactly is being considered by Apple? Many people who sniff that Apple wanted to reduce the risk of errors and loss of production with production spread, after a manufacturing error at Foxconn last year resulted in the metal shell of the iPhone 5 scratched. In addition, Apple intends to add product lines to face fiercer competition from Samsung Electronics Co. and others. And rumors, Pegatron will reportedly specialized in producing cheap version of the iPhone device.

Pegatron CFO Charles Lin said, 'There is a learning process for new products, so our results improved.' Meanwhile, Apple has not officially introduced the 'cheap version of the iPhone'. However, the D11 event yesterday, Apple CEO Tim Cook Apple gave few clues possibility to produce two versions of the latest iPhone in one year.