Diversifying its manufacturing partners, Apple seeks to become less dependent on Foxconn by shifting production to the lesser-known Pegatron.
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Apple taps Pegatron to manufacture low-cost iPhone

foxconn iphone manufacturing

A new report says Apple is looking to diversify its production partners, shifting production away from Foxconn and relying more on Pegatron, a smaller player in the manufacturing industry. Apple has long relied on Foxconn to assemble the majority of its products, but recently began tapping Pegatron to produce the iPad mini and a limited number of iPhones. Now it is said that the long-rumored low-cost iPhone model could be produced exclusively by the operation.

The move comes at a time when rumors are picking up that Foxconn could begin manufacturing their own branded devices, an obvious conflict of interest. It also follows complaints of poor quality control in the iPhone 5 manufacturing process. Apple has a history with Pegatron that predates the iPhone and iPad. It doesn’t hurt that the company has agreed to accept thinner profit margins.

With a great deal of controversy surrounding Apple’s reliance on Foxconn, the safety of their factories, and the treatment of workers, it seems like a good idea for Apple to distance themselves from the company regardless. For too long Foxconn and Apple have been nearly synonymous.

The budget-friendly iPhone of rumors past could finally launch this fall alongside a new top-tier design (likely the iPhone 5S).

[via WSJ]

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