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© evertiq Electronics Production | May 13, 2013

Pegatron's eating up Foxconn's Apple orders

Taiwan-based manufacturer Pegatron will increase its staff in China with 40% – are we looking at a potential competitor to Foxconn?
Well, if we compare the companies by revenue, then no. Pegatron is just a quarter of Foxconn compared by the size of revenue.

But revenue is not all – the company might still stir up some commotion for the giant – as Foxconn is struggling to grow in the smartphone segment (mainly due to Samsung's increasing domination). Pegatron is drawing more and more orders from Apple, Foxconn's primary source for orders from the smartphone segment, a Reuters' article states.

And with the announcement of increased staff numbers, the speculations of Pegatron being the primary assembly partner for the budget version of the iPhone flourish.

But how can a company the size of Pegatron threaten a colossos such as Foxconn? Competitive pricing, at the expense of lower margins, the report concludes.

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