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Pegatron rumored cutting CDMA iPhone 4 production early

updated 10:35 pm EDT, Wed April 27, 2011

Pegatron iPhone 4 builds may drop from 10m to 5m

Purported supply insiders said Wednesday night that Pegatron had been asked to dramatically scale back its production of CDMA iPhone 4 models. The Taiwan supplier had originally been tasked with making 10 million but was said to have been given a "significant reduction" in orders that would cut that number down to five million. Reasons why weren't given by Digitimes' sources.

A reduction on that level would partly contradict Verizon's own public expectations during its latest fiscal results call, when it was still expecting to activate about 11 million iPhones in 2011. Demand so far for the CDMA iPhone 4 has been intense, with 2.2 million sold in winter despite missing half the quarter and launching on the carrier widely considered the global cornerstone of Android sales.

Rather than a loss of interest, the production cut might instead point to an earlier switchover to production for the next iPhone. The new model may not ship until September, but that could leave Pegatron only needing to produce iPhone 4 models for just over two quarters in 2011 before it had to start ramping up production for the replacement. Verizon's estimate may be based on expectations that sales in the last four months of the year would make up the majority of its results.

The drop, no matter the cause, may still result in relatively dampened estimates for Pegatron itself. A 20 to 30 percent spike in notebook production for the spring would be offset by a 25 to 35 percent drop in "communications products," mostly revolving around phones. Pegatron would still see a 10 percent revenue increase, though only after a $19.38 million loss in the winter.

by MacNN Staff



  1. Jeronimo2000

    Joined: Dec 1969



    "Reasons why weren't given by Digitimes' sources"

    Here's a wild guess: maybe Apple figured it couldn't sell that many?

  1. Greengo

    Joined: Dec 1969


    Are they the ones making the white version as well

    If not, then maybe the white CDMA iPhone is ramping up...

    Comment buried. Show
  1. wrenchy

    Joined: Dec 1969


    Attention macnn Editards...

    You forgot to put "Due to Android" at the end of the headlines.

    - Sent from my Android Device.

  1. wrenchy

    Joined: Dec 1969


    By the way...

    I love the "Call Failed" photo. Just about sums up the Apple experience.


    - Sent from my Android Device.

  1. Peter Bonte

    Joined: Dec 1969



    I got a android tablet for free with $49 cleaning products, it adds to the marketshare but is in no way competition for Apple. 90% of Android devices 'sold' are c***.

  1. macman72

    Joined: Dec 1969


    Possible Reason Why Pegatron is Making the Cut

    Although it's great for those of us who pay attention to the rumor sites to get a good idea for what will be in the next iPhone, iPod, or Mac, one possible reason for the significant drop of how many models will be made by Pegatron is that the rumor sites didn't wait for at least a month when it started selling in the retail stores to say that the Verizon iPhone 4 is using the Qualcomm MDM6600 world mode modem. Apparently, most of us (both in the U.S. and around the world) knew what that meant as far as upcoming features for the iPhone 5; and decided to hold off on purchasing an iPhone 4 and wait for iPhone 5. I, for one, am very thankful for this leak when they took apart the phone; and do very much hope that not only will the iPhone 5 work on both CDMA and GSM; but that there is also enough room to include the 1700Mhz band, so that the rumor made this past weekend of T-Mobile possibly selling it as well will become true. If that happens, hopefully it will be enough to prevent the merger of AT&T and T-Mobile; the feeling that I get when I read most of the comments from is that most of T-Mobile customer base will abandon ship for another carrier if this merger happens.

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