Pegatron receives orders for CDMA iPhone, say sources Tweet

Pegatron Technology has received orders for an iPhone based on CDMA from Apple with annual shipments expected to reach 10 million units. The orders should start contributing to the Taiwan-based company's revenues in August or September, according to sources from component makers.

Pegatron has declined to comment on the report.

Spun off from Asustek Computer's manufacturing arm in 2008, Pegatron has continued to be hampered by the uncertainties regarding the group's separation of own-brand and contract manufacturing businesses.

Key customers including Dell and Toshiba have since reduced orders to Pegatron, and Asustek, perhaps to make a statement that it is indeed focused on its brand business and to reduce conflicts of interest from both sides, is searching for new notebook sources, according to industry observers. For handsets, Garmin-Asus has also handed a portion of A50 and A10 smartphone orders to Foxconn.

With order cuts from multiple fronts, Pegatron in recent years has looked to other segments including LCD TV and tablet PCs for manufacturing opportunities.

The new iPhone orders are seen as a step in the right direction for the contract manufacturer, the observers said.

Asustek and Pegatron will be listed synchronously on the Taiwan Stock Exchange (TSE) on June 24. Asustek's stock will suspend trading from May 18 to June 23. The official spin-off will occur on June 1.

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