A Foxconn Technology Co Ltd (TPE:2354) (OTCMKTS:FXCOF) subsidiary is making a huge investment within the next two years for a new factory exclusive to Apple Inc. (NASDAQ:AAPL). According to Bloomberg, Innolux (a Taiwan-based subsidiary) is forking over $2.6 billion.
Apple’s major shortage of the iPhone 6 Plus has prompted serious concerns about production, more specifically supply delays for displays. Finding a way for Apple to protect future displays would be a good thing for Apple, even if the company sources most of its displays from other companies like Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935), LG Electronics Inc. (KRX:066570) (OTCMKTS:LGEAF), Sharp Corporation (TYO:6753) (OTCMKTS:SHCAY), and Japan Display Inc (TYO:6740).
A manufacturing reassessment
Foxconn is already the main manufacturer for Apple products, but Pegatron is the secondary supplier. The latter is playing a more significant role in ramping up production for both iPhone 6 and iPhone 6 Plus. There was multiple reports from different Asian media sources claiming Pegatron was responsible for manufacturing the iPhone 6. Nikkei Asian Review points toward a 10% increase in the company’s supplier communications product revenue as well as net profit surge of $153 million during iPhone 6 launch.
Pegatron preps for Apple’s production
Pegatron is preparing to increase production of more iPhone 6 models and possibly the 5.5 inch iPhone 6 Plus which is currently produced by Foxconn.
Apple initially launched the iPhone 6 in many countries including United States, United Kingdom, Germany, Japan, Australia, Hong Kong, Canada, and France. Since then, Apple added more countries including China, Spain, United Arab Emirates, Austria, Denmark, Norway, New Zealand, Ireland, Switzerland, Russia, Saudi Arabia, Sweden, Portugal, Norway, Netherlands, Luxembourg, Quatar, Taiwan, Turkey, and Sweden. The new iPhones will be in 115 countries by the end of this year,
The iPhone is one of of Apple’s most important products. It is this particular device that helped the Cupertino-based tech giant reach the level of success it has reached today. It also helped the company create a market for iPad tablets and the upcoming Apple Watch.
