“Strong iPhone 6 sales lifted annual net profit at Pegatron Corp, the Taiwanese assembler of Apple Inc, to a record high, as its chief executive questioned the company’s reliance on smartphones to generate revenue,” Michael Gold reports for Reuters.
“Pegatron on Monday said 2014 net profit rose 53.4 percent from the previous year to T$14.66 billion ($466.8 million),” Gold reports. “Asked about Pegatron’s reliance on smartphones, Chief Executive Jason Cheng told an earnings briefing Pegatron was taking advantage of a good business opportunity.”
But he added: ‘It’s definitely not a good thing to be too concentrated on just a few clients. But you can’t avoid the fact that mobile phones have been fast sellers. When good business comes your way, how can you not take it?'” Gold reports. “‘They should be careful about their reliance on Apple,’ said Fubon Securities analyst Arthur Liao, who estimates Apple products contributed as much as 59 percent to Pegatron’s revenue last year.”
Read more in the full article here.
MacDailyNews Take: It’s far better to be an iPhone have than an iPhone have-not.
True about the Apple reliance…. at any time, Apple could take stuff in-house. They’ve done it many times before.
But far, far, better to rely on being a supplier to Apple than to other companies – Microsoft, Google, etc.
As Jason Cheng stated, it is a good business opportunity. What is Pegatron supposed to do? Say “no thanks, I would rather not grow my business by 50+% because i would then be too dependent on Apple and might even grow more”?
… but if Apple is happy with Pegatron, then that’s the best way to ensure success. Keep Apple happy.
‘They should be careful about their reliance on Apple’
We all know about the dangers of putting all your eggs in one basket, but when Apple is the company making the most phones and the most profits, what sense would there be in trying to get anything other than the biggest possible slice of Apple’s business ?
If there were other other companies out there who operate on a similar scale to Apple, then they would be great clients to work with as well, but the reality is that only Apple has that scale. Unless Pegatron would prefer Apple gives some of their business to Pegatron’s rivals, Pegatron will have to be happy relying on Apple for the majority of it’s business.
where’s MDN’s old Pegatron graphic? 🙂