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Pegatron beefs up for robust iPhone 6 demand

TAIPEI -- Apple assembler Pegatron is expanding production capacity to handle strong global demand for the iPhone 6.

     On Monday, Pegatron's Chief Executive Jason Cheng told investors his company expects to complete 2014 with $200 million in capital expenditure, and that the figure for next year will rise to $300 million.

     Cheng's statement came as Pegatron, the Apple supplier believed to be responsible for iPhone 6 production along with Foxconn Technology Group, saw revenue from its communications products grow 10% year on year and net profit surge 92% to NT$4.7 billion ($153 million) in the July to September period - the same quarter the U.S. tech giant began shipping the iPhone 6.

     Local press reports suggest Apple may also tap Pegatron to produce the iPhone 6 Plus since Foxconn has been struggling to cope with demand. Pegatron officials did not comment directly on the media speculation.

     However, Pegatron's overall revenue for the same three-month period went down 6.8% year on year to NT$236.7 billion ($7.7 billion) because of the slowdown in its core computer business as global demand for notebooks fell off.

     The company's income from computer products dropped 30% from a year earlier with commensurate declines in shipments and average selling price, the company's Chief Financial Officer Charles Lin reported on Monday.

     Revenue generated by consumer products including tablets and LCD televisions also fell 18% from a year earlier, according to Lin.

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