According to a report by The Wall Street Journal, Apple may be giving the task of producing its upcoming low-cost iPhone to Taiwanese company Pegatron. This, of course, breaks the long standing monopoly that the Taiwan based company Foxconn had on manufacturing iPhone devices.
According to the Journal, this move will give Apple a chance to expand its production lines, and will help it to avoid disastrous production stalls, as it creates more products, with more advanced designs each time.
Pegatron Corp., named after the flying horse Pegasus, will be the primary assembler of a low-cost iPhone expected to be offered later this year. Foxconn’s smaller rival across town became a minor producer of iPhones in 2011 and began making iPad Mini tablet computers last year.
Pegatron’s rise means an end to the monopoly that Foxconn Technology Group—the trade name for Hon Hai Precision Industry, the world’s largest electronics contract manufacturer—has held over the production of Apple’s mobile products.
Foxconn admitted last year that it was having a difficult time producing the iPhone, noting that its design was more complex than any Apple had issued before it. Production was made even more difficult after Apple mandated new quality control provisions.
This new report is backed by Pegatron’s announcement earlier this month, which confirmed that it would be increasing its work force by 40%.
Foxconn has been accused of poor quality, and frowned upon by many for the poor work conditions in its factory. So this move would be wise for publicity as well as quality.