Report: Apple orders up 10 million CDMA iPhones

“Pegatron Technology has received orders for an iPhone based on CDMA from Apple with annual shipments expected to reach 10 million units,” Monica Chen and Willie Teng report for DigiTmes.

“The orders should start contributing to the Taiwan-based company’s revenues in August or September, according to sources from component makers,” Chen and Teng report.

Chen and Teng report, “Pegatron has declined to comment on the report.”

“Spun off from Asustek Computer’s manufacturing arm in 2008, Pegatron has continued to be hampered by the uncertainties regarding the group’s separation of own-brand and contract manufacturing businesses,” Chen and Teng report.

Full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Judge Bork” for the heads up.]

66 Comments

  1. What if AT&T failed to live up to their part of the bargain by failing to deliver on select features and services? Does that give Apple wiggle-room to renegotiate the terms of their contract? I would think it would.

    AT&T shamefully failed Apple publicly, in a big way and one would think that’s a clear violation of the terms of agreement btwn them. Surely they both had provisions in the contract that would address the shortcomings of either party. I know AT&T was taking a big risk on Apple’s pet project, knowing Verizon had already turned them down.

    Would Apple sign off on a contract if there weren’t mutual deferments in place. Perhaps they renegotiated the original contract while discussing iPad?

    Those of you thinking CDMA is passé and isn’t worth the time and trouble, it’ll probably be around for another ten-years, at least until Verizon et. al., make a complete transition to LTE. There will be those customers who aren’t inclined to upgrade to a smartphone.

    Ten-million CDMA iPhones is a good start, however, the way I see it, there are at least 25 million potential customers using CDMA-2000 in the US, who are ready to buy an iPhone now. If these are for Asia and Europe and Canada, that’s not enough for a roll-out.

    Why would a Verizon customer buy an iPhone knowing they can’t use voice and data simultaneously? They don’t care! They don’t have that ability now, so it’s not as if they’re giving up anything. They’ll be making up for it by flooding the App and iTunes Stores.

    It is certainly something to consider, if you’re planning to dump AT&T for Verizon. You’ll just have to adjust and use the words, I’ll call you right back.

  2. @G4Dualie

    When the new iphone 4.0 software is out that allows multitasking.. maybe then it can put a call on hold while someone accesses data? Though not sure how it works if the cell completely drops out once data is trying to be accessed

  3. You know, Pegatron could potentially become huge, provided they meticulously follow Apple’s NDA and quality standards. There are more than phones at stake here for Pegatron, there is a relationship with a juggernaut who will become the largest company in the world.

    Asustek could rue the day they dumped Pegatron. The first clue will be when Pegatron’s stock surpasses Asustek’s.

  4. They’re for China. Verizon doesn’t let you surf and talk at the same time. You really think Steve would go for that?

    And if these phones AREN’T for China, then where are those phones…? Someone else must be building millions more CDMA phones for Unicom….who?

  5. I don’t think Sprint even has 10 million customers left.

    Don’t forget that Sprint also owns Virgin Mobile USA, and Clear, the only high speed wireless internet (802.16e), in some cities now. It’s a good alternative to cable and DSL if one happens to be in a good reception area. Just wish they would pay more attention to the tech and less to marketing hype.

  6. @jtc

    Perhaps, but it would depend on Verizon. I suspect, certain regions of the country, initially, will be able to capitalize on the iPhone’s multitasking abilities as Verizon begins testing their LTE network. By then, Verizon will have monetized those features and added them to their data plans.

    The iPhone will be at the top of Verizon’s food-chain and the data plans will be a premium, I’m sure. But, as iPhone’s momentum skyrockets on Verizon’s network, we should see dramatic changes in their marketing, including buying out existing contracts on AT&T.

    With iPhone used as a bench-standard, consumers will be able to compare features and services between the major carriers and you can bet that will result in some very unique marketing strategies.

    Apples to apples comparisons btwn the Android and iPhone platforms will be possible. I believe Verizon will use the Android as a means to up-sell consumers into an iPhone package, at least until the Android platform reaches parity with iPhone.

    When Apple brings iPhone to US CDMA carriers, it will be a huge win for the consumer. Huge.

    Buy AAPL now, and hang on to your hats!

  7. Why are those of you who are attributing this order to China assuming that CDMA phones are going to China Unicom and not China Mobile? China Unicom has both GSM and WCDMA networks, true, but their market share is tiny relative to China Mobile. There have been a number of articles very recently from sources far more reliable than DigiTimes that Apple and China Mobile have had negotiations about a TD-SCDMA iPhone.

    There is good reason to be skeptical about all of this stuff, particularly the claims about Verizon and Sprint, but if you believe any of it, the China Mobile rumor is the most plausible.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.