Pegatron Hiring Up To 40,000 New Workers To Build The Budget iPhone mini

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If you want proof Apple is planning a ‘budget’ iPhone to address untapped markets, look no further than a new report which says that Apple’s suppliers are going on massive hiring sprees… and citing the imminent arrival of a new, cheaper iPhone as the cause.

Pegatron — one of Apple’s major assemblers of iPhone and iPads — said that it would increase the number of workers it had in China by 40% in the second half of the year. Since they already employ 100,000 workers, that’s quite the hiring binge.

Even more interesting, supplier sources have apparently told Reuters that it’s all due to the budget iPhone:

Suppliers have told Reuters that Apple is developing a cheaper model of the phone, broadening its sales base to lower-income buyers in growth markets such as China and India.

A supplier source in Japan said small-scale production of the display panel for the model would begin in May, ramping up to mass production in June.

What would a budget iPhone be like? Actually, it’s more likely to be a colorful mid-range model in the $200-$500 (unlocked) price range, and many analysts think that the release of such a device by itself could deal a death blow to Samsung’s Galaxy business in the United States.

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  • technochick

    But I thought Pegatron was losing money cause the demand for the iPads had gone down. So why not just put those workers on the phone

  • Steven Quan

    But I thought Pegatron was losing money cause the demand for the iPads had gone down. So why not just put those workers on the phone

    I think you’re talking about Foxconn who has way more employees than Pegatron. Foxconn has over 700,000 employees, Pegatron only has about 100,000 employees.

    It’s total B.S. how Foxconn is losing so much money because of lack of demand for iPads. Foxconn also builds devices for HP, and Dell who probably cut even more orders than Apple did with the way the PC industry is tanking. Foxconn doesn’t just build devices for Apple, their profits are tied in with all the devices they make, not just iPads and iPhones.

About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.

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