In a move to diversify its supplier base KGI analyst Ming-Chi Kuo believes that Apple might opt for Pegatron to manufacture major quantities of its rumoured low cost iPhone and the older models of iPhone like iPhone 4 and iPhone 4S. Apple currently relies on Foxconn for manufacturing majority of its product range. Pegatron has a share of manufacturing around 18% of iPhones produced last year which is predicted to move up to 27% due to Apple giving it more opportunities. It has been rumoured that Apple is diversifying its component manufacturers as well varying from Intel to TSMC.
As per Ming’s prediction the newer model of iPhone 5S and the iPhone 5 will both be manufactured at Foxconn in full capacity as rumours suggest no design change between the models. But Apple might move out 55% of production of iPhone 4 and 4S and 75% of the rumoured low cost iPhone to Pegatron which will increase its overall share to 27% as per the predicted number of handsets to be sold in 2013.
The analyst predicts sales of around 35.8 million units of iPhone 5S, 53.4 million units of low cost iPhone and an overall sales figure of around 110 millions iPhones to be sold later this year after the launch of new models in second half of the year.