Apple Supplier Pegatron Cite Cuts to iPhone 5C Orders for Profits


Pegatron got record revenues last quarter thanks to the iPhone 5C, but pressure on margins and rumors of alleged order cuts for the iPhone 5C are cause for concern.

Monday, the Taiwan based manufacturer Pegatron reported lower-than-expected third quarter net profits as cost for the ramp-up in production of the iPhone 5C affected the company’s bottom line. Foxconn has been Apple’s primary assembly partner for years Pegatron has gotten a contract to build the iPhone 5C and iPad mini.

Because of the ramp up costs and the overall weak sales since launch has lead Apple to switch gears by raising orders for the iPhone 5S says The Wall Street Journal and ordering cutbacks on the iPhone 5C says Reuters.

Speculation on the sales of the iPhone 5C is the main reason why Apple has not broken down the 9 million sales figure between the two phones for their debut.