“Pegatron Corp, an assembler of Apple Inc’s iPhone and iPad, said it would increase its number of workers in China by up to 40 percent in the second half of the year, fuelling market speculation of a new cheaper iPhone,” Reuters reports. “Pegatron currently employs 100,000 workers.”

“Suppliers have told Reuters that Apple is developing a cheaper model of the phone, broadening its sales base to lower-income buyers in growth markets such as China and India,” Reuters reports. “A supplier source in Japan said small-scale production of the display panel for the model would begin in May, ramping up to mass production in June. Apple is widely expected to launch the cheaper version of the iPhone in the third quarter.”

Reuters reports, “Pegatron’s Chief Financial Officer Charles Lin told Reuters on Thursday that 60 percent of the company’s 2013 revenue would come from the second half. He declined to comment whether the cheaper iPhone was among the new products to be made in the second half.”

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