Overseas manufacturers earn holiday triple pay to meet Apple's schedule
According to DigiTimes, Pegatron's chairman decided to halt the company's holiday break and will triple employees' salaries during the holidays "in order to meet Apple's schedule." Though the report didn't specify, it was likely referring to China's most important holiday, the weeklong Lunar New Year. The holiday starts on Feb. 2 and ends Feb. 8.
The report also did not indicate what products employees are working to build, but noted that Pegatron recently landed orders for Apple's fifth-generation iPhone 5, with an initial order volume of "at least 10 million units." Apple typically updates its iPhone on an annual schedule, which would suggest the "iPhone 5" will go on sale in June.
Pegatron reportedly first received advance orders for Apple's soon-to-launch CDMA iPhone 4 in early 2010, with an initial volume of 10 million to 12 million units.
Because Apple has been expanding its orders, Pegatron plans to shift some of its iPhone manufacturing duties to its plants in Suzhou, China. Currently, the bulk of the manufacturer's iPhones are built in Shanghai.
Pegatron is confident in its 2011 outlook, thanks largely to secured contracts for the CDMA iPhone and the iPhone 5. The company also reportedly expects to have increased notebook orders from Toshiba and Acer, as well as strong tablet and LCD TV sales.
Another report this week claimed that overseas manufacturers will begin assembling the iPhone 5 in May, in time for a launch this summer. Production of the second-generation iPad is also expected to begin in February, according to China's Commercial Times.