iPhone 5c May Be A Flop For Apple, But It’s A Huge Success For Pegatron



Photo: Apple

Tim Cook might have claimed that iPhone 5c demand “turned out to be different than we thought” on Apple’s recent quarterly earnings conference call, but there’s one company that doesn’t seem too upset about the 5c’s performance: Apple supplier Pegatron.

Announcing a 22% jump in earnings for the fourth quarter, Pegatron is crediting mobile devices with its improved marketplace performance. Pegatron’s manufacturing contract with Apple — for manufacturing both the iPhone 5c and iPad mini — accounts for 40 percent of its total revenue.

Although the company previously made some older iPhone models, 2013 was the first year in which Pegatron was the primary manufacturer of a new iPhone model.

The company expects shipments of smartphones, tablets, and game consoles to drop between 15% and 20% in the first quarter this year, but notes that this is an expected seasonal reduction.

Source: Wall Street Journal