Apple reportedly reducing its reliance on Foxconn

Sep 18, 2012 09:37 GMT  ·  By

Reports from two securities firms in Taiwan reveal that Pegatron is now the main supplier of iPad minis for Apple. While the product itself remains to be confirmed, Pegatron is said to have scored a whopping 50-60 percent order from the Cupertino giant.

The numbers indicate that Apple is reducing its reliance on long-time-partner Foxconn for assembly.

That’s not to say Tim Cook is pulling away from his contracts with Terry Gou (Foxconn CEO). Far from it, actually. Foxconn is still the main assembler of most Apple products, including the popular iPhone (Apple’s strongest business pillar today).

Chinese publication Economic Daily News reports that Pegatron will be handling 50 to 60 percent of the iPad mini orders, presumably leaving the remainder to Foxconn.

Taiwan’s EDN mentions Foxlink, AU Optronics and TPK as part suppliers, adding that Foxconn and Pegatron are expected to spit out 5 million iPad minis a month (together).

As far as the iPhone 5 is concerned, the Taiwanese newspaper has some new information. Apparently, at least 53 million units are expected to be shipped this year. Pegatron is said to help on the smartphone front as well.

Pundits say Apple is holding a second event this fall with the main purpose of launching this rumored iPad mini. The product, if confirmed, is said to be the final nail in the competitors’ coffins.

The device is believed to employ many iPad 2 parts. Deductively, this will help the California-based mammoth to keep production costs at a low, at least as far as the most expensive components are concerned (processor, display, and other chips).

The mini tablet’s housing is made of aluminum, if the latest hardware leaks are any indication. The screen size is reportedly capped at 7.85 inches on the diagonal, making Apple’s new iPad more of an eight-inch tablet, rather than a seven-incher.