KGI Securities says Apple wants to diversify its production lines

Mar 14, 2013 19:51 GMT  ·  By

Apple will commission both Foxconn and Pegatron to produce its latest iPhones this year. While Foxconn will be the exclusive manufacturer of the next-generation (rumored) iPhone 5S, Pegatron will reportedly score 75 percent of the orders for Apple’s new low-cost iPhone.

None of the devices enumerated above are in circulation, but the consensus among analysts is that Apple will roll out not one, but two new iPhone models this year.

One of them is the imminent iPhone 5S, a revision of the current model with minor enhancements to the electronics inside, including a faster processor, better cameras, as well as more color options for the aluminum enclosure.

The other device is said to be a low-cost version of the iPhone 5 with a plastic / glass-fiber case and relatively decent specs.

Apple will continue to produce its iPhone 4 and iPhone 4S throughout 2013, according to KGI Securities, despite having plans to introduce these new models.

According to Ming-Chi Kuo, an analyst with the investment bank, “Pegatron will be responsible for 75 percent of low-cost iPhone orders and 55 percent of iPhone 4 and 4S production,” AppleInsider reports.

The decision reportedly stems from Apple’s desire to diversify its manufacturing plants.

The research note includes a small table according to which Foxconn will be the sole producer of the iPhone 5S expected to launch this summer.

The Hon Hai-owned electronics manufacturer will also handle 25 percent of the low-cost iPhone production, according to the same chart, which mentions various wireless standards for the upcoming new iPhones.

It still seems highly improbable that Apple will unveil this so-called “cheap” iPhone while continuing to produce the iPhone 4 and iPhone 4S, which can already be considered low-cost smartphones.