Wed, Dec 03, 2014 - Page 13 News List

Pegatron iPhone main supplier: report

Staff writer, with CNA

Contract manufacturer Pegatron Corp (和碩) could get most of Apple Inc’s orders for the next-generation 4.7-inch iPhone 6S next year as the Cupertino, California-based company continues to diversify its supply risk, a foreign brokerage said.

“For the next product cycle, iPhone 6S, likely out in September 2015, we believe for the first time in the iPhone history, Pegatron will become the main source for assembly, with more than 50 percent of the 4.7-inch allocation,” the unnamed European brokerage said in a note to clients on Monday.

Apple first chose Pegatron to start assembling the iPhone 4S in 2012, then gradually expanded Pegatron’s orders to include the iPhone 5C last year and the iPhone 6 this year, the brokerage said, adding that the vendor currently churns out 30 percent of the 4.7-inch iPhone 6 orders.

Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), has received 70 percent of the orders for the 4.7-inch iPhone 6 and all of the orders for the 5.5-inch iPhone 6 Plus this year.

Aside from becoming the main supplier of the 4.7-inch iPhone 6S: “There is also a small possibility that Pegatron will win the 5.5-inch model as well, but this remains to be seen,” the research note said.

On the back of the strong iPhone outlook, the European brokerage raised its price target for Pegatron shares to NT$88 from NT$75.

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