Pegatron expanding China factory capacity for Apple iPhone 6 production

Taiwan's Pegatron, which assembles Apple's iPhones and iPads, is opening up new factory space and recruiting workers in China to meet orders to manufacture the upcoming iPhone 6, Commercial Times reported. Production would begin in the second quarter, the newspaper said today, citing sources which it did not identify. It did not give a timeline for when the phone would arrive in stores. The report also did not specify the number of units that would be manufactured at the facility in Kunshan, on the outskirts of Shanghai, or how many workers would be recruited. In addition to Pegatron, fellow Taiwanese contract assembler Hon Hai Precision Industry would be the other primary manufacturer of the new phone, Commercial Times said. Pegatron chief financial officer and spokesman Charles Lin had no comment on the report. Shares of Pegatron gained 1.64 percent, eclipsing a 0.26 percent rise in the broader Taiwan market. Calls to Hon Hai seeking comment went unanswered. However, the company had announced last week that it would be producing about 90 million new iPhone 6 units this year to meet holiday demand. The company did not reveal any time frame for the launch. It is widely speculated that Apple will launch two iPhone models this year as well, with larger displays that will be able to compete with Android flagships on a more level ground. More controversially, the company is considering a cheaper 8GB version of the iPhone 5c for wide release. With inputs from Reuters