Sat, Nov 03, 2018 - Page 12 News List

Pegatron unfazed by change in Apple sales reporting

By Ted Chen  /  Staff reporter

Whether Apple Inc discloses its hardware unit sales figures has no bearing on the prospects of the US technology giant’s supply chain, contract electronics manufacturer Pegatron Corp (和碩) chairman Tung Tzu-hsien (童子賢) said yesterday.

Apple, which on Thursday announced its financial results for last quarter, said the company would no longer be providing unit sales for its smartphones, tablets and computers starting this quarter.

While Apple’s decision has sparked concerns that the company is trying to downplay a tougher and increasingly saturated smartphone market, Tung said that business is proceeding as usual at Pegatron.

Pegatron is a key assembler of more than half the shipments of this year’s iPhone XR and a smaller share of the iPhone XS Max.

Tung reiterated that Pegatron does not comment on its customers.

Tung also addressed previous reports of a labor shortage at Pegatron’s plants in China, and said that the issue has been largely resolved, he was quoted as saying in a report by the Chinese-language Economic Daily News.

The company was short-handed at the beginning of September, but its ranks were quickly filled by the end of that month, Tung said.

Earlier, Tung had said that Pegatron’s factories are capable of raising its workforce by several times to accommodate major product launches by clients.

Labor demand could also shift widely on a weekly basis, he said.

As the iPhone XR began its first shipments last month, Tung said that October has always been a part of the company’s peak season, while implying a positive outlook for the final quarter.

Apple’s newest iPhones helped push its third-quarter shipments to 46.9 million units, up 0.5 percent from the 46.7 million units recorded in the same period last year, with a global market share of 13.2 percent, according to preliminary data from the International Data Corp (IDC) published yesterday.

Huawei Technologies Co (華為) once again beat Apple to take the second position, with shipments of 52 million units and a market share of 14.6 percent.

Samsung Electronics Co continued to lead the market with a 20.3 percent share on shipments of 72.2 million units, IDC said.

However, global smartphone sales are slowing, as total shipments fell 6 percent year-on-year to 355.2 million units last quarter, marking a fourth quarterly drop in a row, it said.

China, which accounted for one-third of global smartphone shipments, also saw demand drop 13.4 percent annually in the quarter, marking the sixth consecutive quarterly decline, IDC said.

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