Pegatron Shipping iPhone 5 as Latest Contract Supplier

Taipei, Dec. 26, 2012 (CENS)--Pegatron Corp. has begun shipping iPhone 5 in the last week of 2012 as the latest contract assembler of the newest Apple smartphone phones and is estimated to fill around 15% of world shipment of this phone in 2013.

Apple released the latest of its smartphone in September this year in 22 economies and is adding more markets. To keep up with strong demand for the phones, Apple has signed up Pegatron as another contract assembler of the phones after Foxconn.

Industry executives estimated the contracts will make significant contribution to Pegatron's revenue for the first quarter of 2013.

Apple sold 88.03 million iPhones in the first three quarters of 2012 and contract suppliers are estimated to ship 130-140 million of the phones as a whole by the end of the year. In 2013, they are projected to ship 190-200 million systems, with Pegatron estimated to fill around 15% of the supplies.

Pegatron Chief Executive Officer (CEO) Jason Cheng pointed out that the company's revenue for the fourth quarter of 2012 from communications-equipment contract manufacturing will drop 20-25% from the third quarter due to changeover of the products.

Although Microsoft has reportedly contracted Pegatron to assemble its Surface smartphones, the contract supplier has denied the reports.

Industry executives pointed out that Pegatron will have only one contract smartphone buyer as Asustek Computer has recently shifted its PadFone 2 contrcts to Wistron Corp.

Cheng pointed out that since the contract manufacturing has been dominated by a few suppliers, it is hard for the company to win any new customer. He said the company will increase margin by best making the contract products.