RUMOR: Pegatron, Hon Hai win Apple orders for CDMA iPhone production

“The Taiwan-based Hon Hai Precision Industry Co., Ltd., now the world`s largest EMS (electronic manufacturing service) provider, is reportedly going to ship the newest CDMA edition of iPhone 4 to Apple Inc. in 2011, according to industry sources,” Steve Chuang reports for China Economic News Service (CENS).

The sources noted that Apple’s order for the CDMA iPhone 4 has been shared evenly between Hon Hai and its Taiwanese peer Pegatron Corp., with Hon Hai`s shipment of the device projected at 15 million units for 2011,” Chuang reports. “Apple will launch the phone in early 2011 in cooperation with a couple of telecom companies as Verizon and China Telecom, in a bid to further boost its smartphone market share through exploring the CDMA segment.”

Chuang reports, “Institutional investors have projected total sales of iPhone smartphones at 50 million units for this year and 75 million units for 2011. As the biggest contract supplier for Apple, Hon Hai will surely benefit from the hot-sellers. Noteworthily, Hon Hai Group has poured US$299 million into construction of a factory in Chengdu, Sichuan Province, southwestern China, to engage in production of Apple’s iPad tablets.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dow C.” for the heads up.]

38 Comments

  1. @Gregg Thurman.
    You are just at Fault 4 Spreading Rumors as well Because,

    How do u Know that,
    (ATT has a 5 year exclusive contract in the US that expires in 2012)
    How do u Know that,
    Do u have info from Steve J. Himself ? Come on.
    We all love Apple and want the to see the iPhone on other Networks but we will only Know when it Happens & it will much sooner than later.
    My Best Friend Who is a Genius, & Don’t ask me @ which Apple Store, Because i will not Jeopardize his Job, told me that there will be another Carrier in the US, Carrying the iPhone this Year.
    He did not know which one of the Carriers & i Do Believe him, so lets all hope 4 the Best.

  2. @ rissior

    Anyone that claims to know Apple would know that documents supplied during a recent anti-trust investigation showed that Apple and ATT have a 5 year deal that expires in 2012. It is easily Googled.

    Your “Genius” is full of crap. Jobs doesn’t share info like that with second level managers, let alone a retail store employees.

  3. @ rissior

    Anyone that claims to know Apple would know that documents supplied during a recent anti-trust investigation showed that Apple and ATT have a 5 year deal that expires in 2012. It is easily Googled.

    Your “Genius” is full of crap. Jobs doesn’t share info like that with second level managers, let alone a retail store employees.

  4. Exactly. People here have incredibly short memory. The 5-year contract has been widely reported three years ago, when it was first discussed, and at the time, many reliable sources had confirmed it. If that weren’t enough, as Greg said, court documents related to the investigation about monopoly abuse (sole carrier in US) revealed that the agreement was indeed for 5 years.

    Feel free to plug your ears and sing “La, la, la, la, I can’t hear you!”.

  5. Exactly. People here have incredibly short memory. The 5-year contract has been widely reported three years ago, when it was first discussed, and at the time, many reliable sources had confirmed it. If that weren’t enough, as Greg said, court documents related to the investigation about monopoly abuse (sole carrier in US) revealed that the agreement was indeed for 5 years.

    Feel free to plug your ears and sing “La, la, la, la, I can’t hear you!”.

  6. “HonHai is also known as Foxconn”

    Actually, Foxconn is a subsidiary of Hon Hai whose brand name eclipsed that of their parent company shortly after they began producing the iPod and later, the iPhone. Not unlike the brands of Chevrolet and Cadillac, which are subsidiaries of GMC.

    Foxconn is an amazing complex culture of a half-million people living in a walled city on 1 square mile of land, which includes 15 factories and dorms, its own downtown, complete with stores, bank, restaurants, and a television network known as Foxconn TV!

    Imagine, 450,000 thousand workers living in their workplace. A lifetime of codependency and institutionalism and I think it’s safe to say they’re not getting a retirement.

    GMC now employs 68,000 workers in 34 US plants (2009), down from 349,000 workers operating 150 US assembly plants in the 1980s.

    As a Christmas gift to 100,000 white collar retirees in 2008, GM eliminated their lifetime health benefits.

    Labor and their employers are joined at the hip for life. Whether you work for Hon Hai or GMC, you devote the best years of your life to your employer in return for a little comfort in your old age, only to be tossed out into the street when they’ve used you all up.

    Unless the minimum wage is abolished in the US, there will never be a return to manufacturing on a scale that launched the industrial age. The cost of living in the US far exceeds our wages and there is no way on God’s green earth, any UAW is gonna change that fact.

    We’ve become too accustomed to being waited on hand and foot, first by black, and now brown people, who now have to fight to keep their jobs because all of a sudden whitey doesn’t mind picking up the garbage, and the fruit, and bringing you iced tea and lemonade.

    You know who makes up most of the unemployment statistics? Middle-aged, middle-class people who were fired because the elitist management refused to take a cut in pay.

    Oh snap! Did I say that outloud?

  7. “HonHai is also known as Foxconn”

    Actually, Foxconn is a subsidiary of Hon Hai whose brand name eclipsed that of their parent company shortly after they began producing the iPod and later, the iPhone. Not unlike the brands of Chevrolet and Cadillac, which are subsidiaries of GMC.

    Foxconn is an amazing complex culture of a half-million people living in a walled city on 1 square mile of land, which includes 15 factories and dorms, its own downtown, complete with stores, bank, restaurants, and a television network known as Foxconn TV!

    Imagine, 450,000 thousand workers living in their workplace. A lifetime of codependency and institutionalism and I think it’s safe to say they’re not getting a retirement.

    GMC now employs 68,000 workers in 34 US plants (2009), down from 349,000 workers operating 150 US assembly plants in the 1980s.

    As a Christmas gift to 100,000 white collar retirees in 2008, GM eliminated their lifetime health benefits.

    Labor and their employers are joined at the hip for life. Whether you work for Hon Hai or GMC, you devote the best years of your life to your employer in return for a little comfort in your old age, only to be tossed out into the street when they’ve used you all up.

    Unless the minimum wage is abolished in the US, there will never be a return to manufacturing on a scale that launched the industrial age. The cost of living in the US far exceeds our wages and there is no way on God’s green earth, any UAW is gonna change that fact.

    We’ve become too accustomed to being waited on hand and foot, first by black, and now brown people, who now have to fight to keep their jobs because all of a sudden whitey doesn’t mind picking up the garbage, and the fruit, and bringing you iced tea and lemonade.

    You know who makes up most of the unemployment statistics? Middle-aged, middle-class people who were fired because the elitist management refused to take a cut in pay.

    Oh snap! Did I say that outloud?

  8. @Gregg Thurman.
    Again,
    (Nobody knows the terms of the Contract but High Exec’s @ Apple & ATT). Nobody Else.
    And For anyone to Suggest otherwise is Pretty Foolish.
    And i would Advise u, not to take Stuff that u may find or may have Read on the internet Via Google or any other Search Engine as Fact.

    The iPhone will be on other Networks in this Country Pretty soon.

  9. @Gregg Thurman.
    Again,
    (Nobody knows the terms of the Contract but High Exec’s @ Apple & ATT). Nobody Else.
    And For anyone to Suggest otherwise is Pretty Foolish.
    And i would Advise u, not to take Stuff that u may find or may have Read on the internet Via Google or any other Search Engine as Fact.

    The iPhone will be on other Networks in this Country Pretty soon.

  10. @Gregg Thurman

    Where in that contract does it say Apple cannot make a phone that won’t operate on AT&T’s networks? I believe AT&T has an exclusive arrangement for the iPhone as it pertains to any US GSM network. Everything else outside that arrangement is fair game.

    Until I hear otherwise, I’ll believe Apple has been free from day-one to build and sell anything but a GSM phone here in America and that they’ve been working on a CDMA version all along.

    Apple realized the sales potential for iPhone eclipsed the spectrum of a single standard like GSM, the moment Verizon turned them down. Admittedly, they needed a boost from AT&T to launch the iPhone, but I never doubted for a minute that Apple would confine it to a single carrier.

    In this day and age, do you really believe a contract is so bullet-proof, that a company like Apple couldn’t find wiggle room around it?

    You, my friend, put too much faith in the legal system and not enough in Apple.

  11. @Gregg Thurman

    Where in that contract does it say Apple cannot make a phone that won’t operate on AT&T’s networks? I believe AT&T has an exclusive arrangement for the iPhone as it pertains to any US GSM network. Everything else outside that arrangement is fair game.

    Until I hear otherwise, I’ll believe Apple has been free from day-one to build and sell anything but a GSM phone here in America and that they’ve been working on a CDMA version all along.

    Apple realized the sales potential for iPhone eclipsed the spectrum of a single standard like GSM, the moment Verizon turned them down. Admittedly, they needed a boost from AT&T to launch the iPhone, but I never doubted for a minute that Apple would confine it to a single carrier.

    In this day and age, do you really believe a contract is so bullet-proof, that a company like Apple couldn’t find wiggle room around it?

    You, my friend, put too much faith in the legal system and not enough in Apple.

  12. Thank you Pedrag. Its obvious from follow-up comments “Nobody knows the terms of the Contract but High Exec’s @ Apple & ATT” and “Until I hear otherwise, I’ll believe Apple has been free from day-one to build and sell anything but a GSM phone here in America”, that many ignore facts in favor of their own wishes/biases.

    The fact is that Apple submitted THE contract (in its defense) for examination by the Courts. Once submitted that contract became subject to public review (as was Apple’s testimony).

    http://www.engadget.com/2010/05/10/confirmed-apple-and-atandt-signed-five-year-iphone-exclusivity-de/

    Anything that goes beyond documented terms of the Apple/ATT deal is pure speculation, with no supporting evidence to its legitimacy.

  13. Thank you Pedrag. Its obvious from follow-up comments “Nobody knows the terms of the Contract but High Exec’s @ Apple & ATT” and “Until I hear otherwise, I’ll believe Apple has been free from day-one to build and sell anything but a GSM phone here in America”, that many ignore facts in favor of their own wishes/biases.

    The fact is that Apple submitted THE contract (in its defense) for examination by the Courts. Once submitted that contract became subject to public review (as was Apple’s testimony).

    http://www.engadget.com/2010/05/10/confirmed-apple-and-atandt-signed-five-year-iphone-exclusivity-de/

    Anything that goes beyond documented terms of the Apple/ATT deal is pure speculation, with no supporting evidence to its legitimacy.

  14. Re: 5-Year Contract
    At the debut iPhone keynote Jobs said he was VERY grateful to Att for trusting him, that he had given them an exclusive 5-Year contract therefore, and that he would NOT violate it, no matter what. Then he went in to say something disparaging about other tech companies that make such promises and don’t honor them.

    No need for court documents. It was all said very earnestly and quite openly.

    That said, it is certainly possible to buy out years of a contract. It may be that Android has become so strong that Apple decided to buy a year from Att to allow them to better compete.

  15. Re: 5-Year Contract
    At the debut iPhone keynote Jobs said he was VERY grateful to Att for trusting him, that he had given them an exclusive 5-Year contract therefore, and that he would NOT violate it, no matter what. Then he went in to say something disparaging about other tech companies that make such promises and don’t honor them.

    No need for court documents. It was all said very earnestly and quite openly.

    That said, it is certainly possible to buy out years of a contract. It may be that Android has become so strong that Apple decided to buy a year from Att to allow them to better compete.

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