Apple will have more suppliers of non-Foxconn devices
In the coming year, it is very likely that Apple will expand its supply of equipment beyond its current partner, Foxconn.
In the coming year, it is very likely that Apple will expand its supply of equipment beyond its current partner, Foxconn.
Analyst Ming-Chi Kuo said he hoped Apple could continue to diversify suppliers, an action that Samsung's rival company did. According to Kuo , the leading candidate for the expansion of Taiwan's Pegatron , the company has experience in designing and manufacturing handheld devices for Nokia, Sony and Lenovo. There is also Wistron , a provider of settings for RIM's EMS service ( now BlackBerry ).
With the current supply diversity, Foxconn will likely be affected, leading to a reduction in profits. If chosen as the main supplier, Pegatron can handle up to 75% of production for low-cost iPhone ( iPhone Lite) .
Apple is said to be looking for ways to reduce dependence on Foxconn by ordering from Pegatron to assemble new iPhone products at a lower cost. Currently Foxconn is holding almost all iPhone and iPad assembly orders.
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