iPad 3 Production Shifted to Pegatron - Report

A report from Taiwan indicates that Apple has shifted most of the iPad 3 production to Pegatron Technology. Previously the Cupertino, California tech giant had relied on Foxconn to deliver the goods.

Taiwan’s Digitimes reports that Pegatron Technology has already landed a small volume of orders for the upcoming "iPad 3", citing sources from the upstream supply chain.

The tablet is set to launch in March, but there’s also an "iPad 4" in the pipeline which, according to the same industry sources, will cause a significant increase in its orders.

The second tablet is scheduled to launch in October, with an initial volume of about 7-10 million units, sources from the upstream supply chain said.

This is the second time the iPad 4 is mentioned in less than a week with the same release schedule.

Pegatron refused to comment on these rumors.

Perhaps more interestingly - given that next-gen iPad talks are a regular affair - the same sources reportedly said that “Apple will also start changing its outsourcing strategy and will have Pegatron primarily focus on production of the iPad series products with production of the iPhone series products as an auxiliary in 2013, while the strategy for Foxconn Electronics (Hon Hai Precision Industry) is vice versa.”

Foxconn has been like a concrete pillar for Apple’s business so far. The Chinese electronics maker has been commissioned by Cupertino to assemble all of the key products that have been sold in the last few years.

Whether or not this has anything to do with the plant explosions we’ve been hearing about, the sources outlined that the strategy is meant to decrease risk and increase product quality.

Finally, the sources noted, “the company [Apple] has already visited Pegatron's plants in China several times recently to ensure the smoothness of the shipment process.”