One Apple Inc. (NASDAQ:AAPL) assembly company is preparing for a huge iPhone 6 demand. Pegatron Chief Executive Jason Cheng explained to investors on Monday his company will compete this year with a capital expenditure of $200 million. It is predicted that number will rise to $300 million.
Apple wants to boost phone production
Pegatron Corporation (TPE:4938) (OTCMKTS:PGTRF) has strongly benefited in the past from iPhone sales. An increasing amount of revenue actually comes from the communications products divisions that also happens to be responsible for production of smartphones and tablets. Even with over Q3 revenue decline for computer assembly business, the communications division increased year-over-year.
It is reported, “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.”
Local press reports indicate Apple may tap long-time manufacturing partner Pegatron to kick in production for iPhone 6 Plus demand as Foxconn has been struggling with high demands. The company took the lead last year to manufacture the iPhone 5C. Representatives for Pegatron have to comment on the matter.
A look at Apple’s strengths
With top selling products and strong consumer interest, Apple remains to be the company everyone is watching. Even the company’s top rivals can’t deny the iPhone maker’s strengths. Microsoft Corporation (NASDAQ:MSFT)’s chief executive officer Satya Nadella recently spoke at a special event. Here is what he said about top rivals Apple and Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), “When I think about what Apple does, what Google does and what Microsoft does, therein lies perhaps the simplest answer to why these three identities are actually pretty distinct. To me Apple’s very, very clear, and, in fact, I think Tim Cook did a great job of even describing that very recently where he said they sell devices and that’s what Apple is all about. And Google is about being, it’s about data or it’s about advertising, it is about serving you ads in a tasteful way, and they’ve done a great job of that business.”
Apple is quite the powerhouse in the tech industry.