Pegatron is major Apple supplier that builds the iPhone and the iPad. The company is increasing the number of workers they have in China by about 40% around the second half of the year, causing speculation that a new cheaper iPhone is on the way. Pegatron has around roughly 100,000 workers as of right now.
A cheaper version of the iPhone has been rumored for several months now. A cheaper iPhone would enable Apple to increase their marketshare in lower-income countries like China and India.
According to an Apple supplier in Japan, the company will be starting a small-scale production of the display panel for the model in May. Mass production will begin in June. The cheaper version of the iPhone is expected to launch in Q3 of this year.
In an interview with Reuters, Pegatron CFO Charles Lin said that 60% of the company’s 2013 revenue will come in the second half of the year.
Pegatron reported an 81% increase in net profit in the first quarter from one year earlier at T$2.31 billion ($78.6 million). The company’s operating margin also improved to 0.8% from 0.3% in the previous quarter.
Based in Taiwan, Pegatron Corporation is an electronics manufacturing company that develops computing, communications, and consumer electronics to multiple vendors. Pegatron builds notebooks, netbooks, desktops, game consoles, handheld devices, motherboards, video cards, LCD TVs, set top boxes, etc. Pegatron is a spin-off of Asustek (Asus).