Pegatron CEO denies making comments about iPad mini demand
Thursday, May 9, 2013 @ 10:11am
| Pegatron CEO Jason Cheng is denying making comments to Bloomberg linking the company's performance to weaker iPad mini demand, according to Fortune. Cheng says that after a Pegatron Institution Investors conference, a Bloomberg reporter came to him "trying to dig out detail numbers about some specific product." But, he claims, "I clearly refused to comment on specific products, nor customers, even though he continued with other questions. I did say those words that he quotes me in the article… but I did not say anything associated with any specific products."
Cheng dismisses the Bloomberg report as "speculation." In the story, Cheng is quoted as saying that an iPad mini-precipitated revenue drop is based "more on demand, while price has been stable."
Reuters meanwhile reports that Pegatron is planning to increase its Chinese workforce by as much as 40 percent in the second half of 2013. The company already has roughly 100,000 workers, which would suggest that it's expecting a massive increase in demand. That could potentially be linked to a new Apple product, such as a low-cost iPhone; Apple is one of Pegatron's largest supply clients.
Pegatron CFO Charles Lin states that 60 percent of the company's 2013 revenue is expected to arrive in the second half of the year, which is consistent with rumors that one or more new iPhones will go into production in June or July and ship in September. A Reuters source at a Japanese supplier claims that small-scale production of a display for a low-cost iPhone is beginning this month, and will scale up in June.