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Pegatron points to IT revival

by on12 June 2015

June was the turning point

While the IT industry has been performing as well as a contestant on the Italy's Got Talent show, Pegatron thinks that things will turn around this month.

Pegatron Technology chairman TH Tung told Digitimes the IT industry was slack during the first half of the year but many players are busy since early June.

He expects demand for IT products to be strong in the second half.

It is not that surprising the third quarter is the traditional peak season of the IT industry because of back-to-school sales and first-tier brands launch new flagship products in the quarter to attract demand.

Pegatron lost orders for the iPad mini 3 which went to Compal, which is proving to be a blessing because it can focus production on the 4.7-inch iPhone 6 which did much better in the first quarter.

The next batch of iPhones will be launched in September and Pegatron has expanded its plants in Kunshan in China to cope. Pegatron is rather dependent on Apple. The company's subsidiaries Kinsus Interconnect Technology, an IC board maker and Casetek, a chassis maker, are both suppliers of iPhone 6 products.

However Pegatron seems to love this sort of dependence. It has been trying to acquire orders for MacBook products and the Apple Watch, but Quanta appears to have dug in its heels.

Last modified on 12 June 2015
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