Apple is reportedly shifting some manufacturing away from Foxconn in order to diversify its manufacturing partners. Till now Foxconn was the manufacturer of most Apple products but WSJ reports that Apple is trying to break the monopoly by offering the contract to manufacture the rumored cheaper iPhone to Pegatron. Apple had earlier tested Pegatron with some iPhone manufacturing and it was a big partner for manufacturing the iPad mini as well. Also Read - Realme GT 5G global launch set for today: Here's how to watch livestream, expected price, and moreAlso Read - Battlegrounds Mobile India, PUBG Mobile to get a unified season system: What it means?
The report suggests Tim Cook wants to diversify Apple’s manufacturing partners to minimize risks. Last year Apple had manufacturing issues with the iPhone 5 as many buyers found their newly bought iPhones had scratches and chipped edges right out of the box. Foxconn has till now enjoyed a monopoly over manufacturing Apple products, which in part has also made it the largest OEM in the world. Also Read - WhatsApp beta for iOS reveals changes, here's what users might get
This news comes after indications that Foxconn too is trying to diversify itself and become less reliant on Apple, which generates a major portion of revenues. Foxconn is said to be looking at manufacturing products under its own brandname and is also looking closely at making peripherals for products it manufactures for others, including Apple.
However, with Apple looking at other OEMs to manufacture its products, it seems that Foxconn is preparing to ensure its vast production lines, expanded majorly to serve increasing demand for Apple products, don’t lie vacant in case it loses more contracts from Apple. It was earlier thought that a decline in demand for Apple products was the reason for Foxconn’s plans to diversify and look at other potential partners.
Foxconn is holding a press conference with Mozilla next week on the sidelines of Computex, where it is expected to announce a tablet running on Firefox OS.