Pegatron To Eat More Of Foxconn’s Apples

| Monday, May 13th, 2013

A new report from Reuters is suggesting that Pegatron has begun eating into Foxconn’s orders.

“Fellow Taiwanese manufacturer Pegatron wants to grab more orders to assemble the fast-selling iPhone and iPad from the California-based tech giant. Analysts say Pegatron offers more competitive pricing – at the expense of lower margins – and appears to be succeeding in pulling in more orders from Apple.”

The article also suggests that it may have something to do with increasing costs from Foxconn, and then in the next breath mentions wage increases and improved working conditions as a reason why Foxconn could be losing business:

“The company, which has come under fire for labor conditions in its factories supplying Apple, has raised wages and improved amenities. But rising labor costs erode margins, and it has been moving manufacturing to China’s cheaper inland provinces.”

Pretty sure Reuters wants you to infer that Apple’s moving to Pegatron because labor cost increases at Foxconn have made it too expensive to do business with the company, despite providing no evidence to the claims, and publishing it as an aside. Nothing like padding your post with garbage to meet quotas.

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