14 DAY TRIAL // A series of reports from Taiwan indicate that Apple is accelerating its efforts to break away from Foxconn by hiring new companies to assemble its much coveted iPhone and iPad devices.
Apple has been rumored to plan a reduction in its reliance on Foxconn, a controversial electronics manufacturer based in Taiwan which currently shoulders the majority of Apple’s orders for iPhones, iPads, and MacBook computers.
While Apple has kicked off a program to assemble some of its Macs at home, the bulk of its profits still comes from portables, and the United States doesn’t have factories capable of producing enough iDevices to satisfy global demand.
Even with Foxconn and Pegatron at its side, Apple was having problems coping with demand, so now it is looking towards more electronics manufacturing service (EMS) providers to expand its production lines.
The news comes from DigiTimes, a regular source of hit-and-miss Apple rumors from Taiwan.
Citing sources from the upstream supply chain, the trade publication reveals that “Apple is planning to split its upstream orders among 2-3 makers instead of relying on only 1-2 major makers, in an effort to avoid the risk of placing all its eggs in one basket.”
As it is inspecting all its EMS partners, Apple is said to have already given the green light to Wistron and Compal Communication.
Wistron will be making iPad minis starting next year or 2015, according to a separate report. Unsurprisingly, both companies have declined to comment.
Apple’s new operating model is regarded as a more flexible one, and may also prove to be more profitable, the sources added.
According to the same report, even if Apple adds these new partners to its manufacturing roll, it isn’t until 2014 or 2015 that they’ll be able to mass produce anything for the Cupertino giant.
The reason stated in the report is that Apple requires all assemblers to establish independent product lines that are created specifically for the company.