There have been rumors about a low cost iPhone for several months but according to sources with deep connections to Apple, the popular smartphone may finally appear in the markets this year. Several websites including Iphoneincanada.com have been discussing the possible tech specs as early as February 2013. Some high resolution images of the front and rear shell as well as a couple of videos have also hit the internet but Apple has not confirmed the rumors as yet. According to Wall Street Journal, Pegatron (an Apple supplier) is likely to assemble the low cost iPhone.
“The “information leak” comes from Pegatron’s investor conference held on Monday, where the company has pointed to two numbers: the declining profits for the second quarter and the 40%-50% growth projected for the third quarter. The decline in profits posted for the second quarter is due to Pegatron’s involvement in the slumping PC industry. Because analysts don’t believe in the rebirth of the personal computer industry anymore, and the next quarter’s growth is due to increased sales in non-computing products, the first thing that comes into discussion is Apple’s contribution to company revenue”, reported the iPhone in Canada.
“And this is exactly where the lower-cost iPhone comes into the picture. As we previously reported, Pegatron has closed a contract with Apple for assembling the lower-cost handset. Furthermore, Apple accounts for about 40% of Pegatron’s third-quarter revenue. Because growth comes with a price, you may recall that following earlier rumors about Pegatron’s accelerated hiring process, China Labor Watch has investigated the company’s facilities and found major irregularities. Today, however, Pegatron CEO Charles Lin said the firm already has made changes to its factories and is working to comply with Apple’s standards”, the website further added.
At Pegatron’s annual investor conference held on Monday earlier this week, it was revealed the company expected at least 40 to 50 percent growth in the third quarter of the year. Despite the reduced profits, Pegatron is sure of massive growth for the third quarter and it also confirms the rumor they are working with Apple to launch the lower cost Apple iPhone in September. Pegatron’s decline is profits is believed to be a result of slumping PC industry as experts believe the rebirth of personal computer is highly unlikely. It seems the increase in sales s based on other non computing products with Apple as the main contributor to company’s revenue. Sources have also confirmed that about 40 percent of Pegatron’s revenue for third quarter will come from Apple.
Source: iPhone In Canada
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