China Foxconn

Photo: Associated Press

Pegatron, Apple’s main supplier for the iPhone 5c, has reported 22 percent year-on-year earnings growth, citing mobile products as the main source of the increase. KGI Securities analyst Angela Hsiang told the WSJ that Apple provides 40 percent of the company’s business.

Pegatron has long been a secondary iPhone supplier, but was last year given the lead in production of the iPhone 5c, which it manufactures along with the iPad Mini. The company did not provide any breakdown in earnings between the two products.

Although the earnings increase is a big rise, the company’s operating margin is testament to the tough deals Apple strikes with its suppliers: Pegatron’s operating margin increased from 1.6 percent to 1.9 percent.

Pegatron is expected to share production of the iPhone 6 with Apple’s lead supplier Foxconn.


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