Apple’s manufacturers literally can’t build iPhones fast enough. iPhone 6 Photo: Jim Merithew/Cult of Mac
Apple manufacturer Pegatron is having to expand its production capacity to deal with the epic demand being heaped on it due to the success of the iPhone 6, according to a new report.
Earlier today, Pegatron CEO Jason Cheng told investors that his company has spent upwards of $200 million in 2014 in capital expenditure to help ramp up production, and that this figure is going to increase to a massive $300 million next year.
Although a slowdown in notebook demand meant that Pegatron’s overall revenue is down 6.8% versus the same quarter in 2013, revenue from the company’s communications products (which includes the iPhone 6) grew 10% year on year. Net profit meanwhile leaped an astonishing 92% in the July-to-September period.
For those keeping track at home, this is the same time Pegatron began shipping the iPhone 6.
iPhone 6 and 6 Plus Photo: Jim Merithew/Cult of Mac
Tim Cook wasn’t kidding when he said that the iPhone 6 and 6 Plus were proving to be Apple’s most popular iPhones of all time.
Two new reports coming out of Apple’s Chinese supply chain today demonstrate the extent to which this is true. According to one report, Apple’s Chinese production line is on course to ship a total of 50 million iPhone 6 devices by the end of 2014 — referring only to the 4.-inch iPhone 6 and not including the 6 Plus.
By comparison, for the calendar fourth quarter of 2013, Apple sold a total of 51 million iPhones all-in, which itself marked an all-time quarterly record.
People may talk about tablet sales flatlining, but if earnings of iPad parts makers are anything to go by, Tim Cook was absolutely right when he called this year’s sales lull a mere “speed bump.”
Casetek Holdings, aka the Pegatron subsidiary responsible for constructing the iPad chassis, has announced impressive revenues of 108.22 million for September: an increase of 21.25 percent on month and 16.48 percent on year.
Apple’s 5.5-inch “phablet” iPhone 6 Plus may still be in short supply, but according to supply chain sources it’s likely to wind up accounting for a whopping 60% of total iPhone 6 family shipments.
Prior to the iPhone 6 Plus’ official announcement, analysts were predicting the plus-sized iPhone 6 would make up a tiny fraction of the sales of its smaller sibling. Taiwan’s Topology Research Institute predicted that of the 80 million iPhone 6 family units it forecast would sell by the end of 2014, the iPhone 6 would account for 70 million, while the 6 Plus would sell only between 8 and 10 million units during that same timeframe.
The iPhone 6 is one of the most eagerly anticipated iPhone refreshes in years, but just how anticipated it is might surprise you.
Taiwan’s Business Weekly is reporting that Apple has orders at least 68 million units of its new iPhone. To put that in perspective, if true this is twice as large as the order Apple placed for the iPhone 5.
Don’t underestimate the power of having Apple on your side!
Not long after Foxconn announced record earnings thanks to its work on the iPhone, fellow Apple manufacturer Pegatron Corp is predicted to see consolidated revenues of $33.3 billion for 2014, mainly due to shipments of Apple’s next generation iPhone and iPad models.
Foxconn and Pegatron — the two leading manufacturers set to produce the iPhone 6 — have been on a massive hiring spree as of late.
According to Taiwan’s Economic Daily News, Foxconn will recruit in excess of 100,000 new workers in mainland China to help assemble Apple’s much-anticipated next generation iPhone. It had previously been reported that the company was opening up new factory space to carry out the work.
Rival Taiwanese assembler Pegatron will also be upping the workforce in one of its factories by 30 percent in order to meet the demand the influx of new work will place on it.
It’s that time of year when Apple finalizes its supply chain plans for the next generation iPhone, and if you believe new reports coming out of Taiwan Foxconn is getting the biggest piece of the pie.
While this isn’t exactly earth shattering news, it’s still a bit surprising (and, for at least one company, disappointing) given that Apple has been shifting more and more manufacturing work to rival company Pegatron in recent times. Pegatron has been consistently stealing work by undercutting Foxconn’s prices — although these latest rumors state that Apple may have elected to remain with its long-time manufacturing partner for the bulk of work on the iPhone 6.
Pegatron has reportedly received orders from Apple to start production on the iPhone 6. According to Taiwan’s Industrial and Commercial Times, the supplier will be producing around 15% of Apple’s upcoming 4.7-inch handsets, ahead of their launch in September.