In a move aimed at giving Apple greater supply chain balance, the company is expected to shift over a greater percentage of manufacturing to Pegatron. Historially, Foxconn has been responsible for the production of all iPhones and iPads. However starting 2011, Pegatron has been responsible for making a small segment of iPhones and has since graduated on to production of the iPad Mini.
The Wall Street Journal suggests that Pegatron will take on responsibilities for the manufacturing of a new low cost iPhone expected to be offered later this year. The gradual shift from Foxconn to Pegatron can be attributed to manufacturing glitches made by the former in the case of the iPhone 5. Additionally it is believed that Pegatron has been willing to cut down on its profit margins to gain Apple’s business. Foxconn has been under scrutiny over a series of worker suicides and claims of poor wages. Pegatron is responsible for production of products from several competing brands like Microsoft, HP and Dell. The Taipei based company has significant ties with Apple as it was responsible for production of the first generation iBooks.
[Via – WSJ]