Apple seems to be looking to diversify its production line in Asia, according to a report in The Wall Street Journal. Instead of outsourcing the work to Foxconn as in previous years, rumors indicate that it has already signed a deal to manufacture the “cheap” iPhone with Foxconn’s rival company called Pegatron.
Foxconn has been manufacturing most of Apple's products and was its exclusive partner with the wishes of Steve Jobs. However, Tim Cook seems to want to change the situation in this area as well, giving other companies the opportunity to enter the field dynamically and break Foxconn's monopoly.
Pegatron Corp., named after the flying horse Pegasus, will be the primary assembler of a low-cost iPhone expected to be offered later this year. Foxconn's smaller rival across town became a minor producer of iPhones in 2011 and began making iPad Mini tablet computers last year.
Pegatron's rise means an end to the monopoly that Foxconn Technology Group—the trade name for Hon Hai Precision Industry Co., the world's largest electronics contract manufacturer—has held over the production of Apple's mobile products.
Foxconn has become a huge company thanks to the huge success of the iPhone and iPad. The same source says that this success has made them have an arrogant attitude even towards Apple itself, which combined with the problems that arose in many batches of the iPhone 5 they produced has made Tim Cook very thoughtful.
Pegatron, which has recently sharply increased its workforce by 40%, is reported to have made a better offer to Apple to manufacture the "cheap" iPhone.
Dimitrios Georgoulas @ GreekAppleNews
