Pegatron Technology is expected to see its net profits reach only NT$250 million (US$7.78 million) in the second quarter, down 40% sequentially, and EPS of only around NT$1 despite having high gross margins in the second quarter, according to a Chinese-language Economic Daily News (EDN) report citing market watchers.

Pegatron's second-quarter gross margins are estimated to have reached around 6%, higher than first quarter's 5.8%.

With Apple ready to release new iPhones and having cut orders for existing models during the first quarter, and the company seeing its notebook shipments weakening, Pegatron's revenues were down NT$12.2% sequentially to reach NT$224.98 billion. However, compared to the same period a year ago, the amount still grew 3.2%, the paper noted.

However, Apple's release of its next-generation iPhones is expected to significantly increase Pegatron's revenues in the third quarter and reach around NT$280 billion, up 24% sequentially, the paper added.