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Pegatron Chairman Says Lower-Cost iPhone Will Not Be Cheap!

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Last month, J.P. Morgan analysts made their case for why Apple will position its rumored lower-cost iPhone as a "mid-end" device priced in the range of $350-$400 without subsidies, addressing a relatively sparse segment of the market while still maintaining the ability to offer a quality user experience. 


Macotakara now points to a pair of reports from the China Times including claims from Pegatron chairman T.H. Tung supporting that notion. Pegatron has been said to be the primary assembler for the lower-cost iPhone, with Foxconn focused on the iPhone 5S.

According to the first report [Google translation] from the China Times, Tung addressed the iPhone at a meeting of the company's shareholders, expressing his displeasure with reports referring to the lower-cost iPhone as "cheap" and noting that the "price is still high". Tung apparently believes that attaching the "cheap" description to the lower-cost iPhone gives the impression of a low-value feature phone rather than the full-featured smartphone it will actually be. 


second report [Google translation] quotes Tung as saying that Pegatron's factories remain busy with nonstop production. The company has been reported to be undertaking asignificant expansion of its workforce for the second half of this year, presumably to support production of the lower-cost iPhone. China Times indicates that Pegatron is ramping up for shipments of 13-15 million units of the device during the third quarter. 


Apple's lower-cost iPhone is expected to launch around the same time as the iPhone 5S, with September being the most commonly cited timeframe. The lower-cost iPhone is said to be very similar to the iPhone 5/5S but with a slightly thicker plastic shell that will be available in a number of colors.

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