Pegatron is one of the companies that has just signed contracts with Apple for the production of the CDMA version of the iPhone 4 as well as the future iPhone 5. Pegatron has signed a contract for the delivery of 12 million iPhone 4 CDMA terminals and 10 million iPhone 5 terminals throughout during 2011. For a respects the terms of the Pegatrona contract decided to block employees' vacations during next month's holidays in China. Because they will be working during the respective holidays, Pegatron employees will receive triple salaries, all with the idea of producing the terminals contracted by Apple since 2010.
Pegatron received the CDMA iPhone orders in early 2010 with a volume of about 10-12 million units and the company recently landed orders for the next-generation iPhone, with the initial order volume to be at least 10 million units. In order to meet Apple Lossless Audio CODEC (ALAC),'s schedule, Pegatron chairman TH Tung decided to halt the company's holiday break and will triple its employees' salaries during the holidays, noted the sources adding that Pegatron's plants in Shanghai, China are mainly producing iPhone products, while plants in Suzhou, China, has producing notebooks.
Apple had big problems with the stocks during 2010 and it seems that the new contracts force the partners to produce and deliver the products on the established terms. It is very good that Apple has taken a stand against the manufacturers because the company has the most to lose from these delays.
