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Pegatron Earnings Rise on Apple Role
Keywords:
Tags: Telecom, Computers, China,
Apple provides about 40% of Taiwanese company Pegatron revenues. Starting with older iPhone models, the company now supplies the new model iPhone 5C. Revenue in the 4th quarter 2013 for iPhones and tablets increased 20%, as sales from televisions and PC's declined. Operating margins increased slightly to 1.9% in the 4th quarter 2014 from the prior year quarter 1.6%.
Apple's diversification of its manufacturing with Taiwanese supplier Pegatron added to Foxconn (Hon Hai)
03/25/2014
With the need to strengthen manufacturing Apple is diversifying away from Taiwan's Foxconn. Samsung does its own manufacturing giving it more flexibility and cost advantage. Apple is moving work on the mini iPads and lowcost iPhones to Pegatron. Pegatron operates at margins of about 0.8% compared to 1.7% for Foxconn. It is also gearing up to manage the greater complexity of the iPhone 5 and successor models.
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