WSJ: The "cheap" iPhone will be built by Pegatron and not Foxconn


Budget-iPhone-2

Apple seems to want a variety in its production line in Asia, according to its current report The Wall Street Journal. Rather than assigning the Foxconn job to all of the previous years, he says he has already signed an agreement to build the cheap iPhone with Foxconn's rival company, Pegatron.

Foxconn has so far manufactured most of Apple's products and was its exclusive partner with the wishes of Steve Jobs. Tim Cook, however, seems to want to change the situation in this area also by giving other companies the opportunity to enter the field dynamically and break the Foxconn monopoly.

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 started 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 Co., the world’s largest electronics contract manufacturer — has held over the production of Apple’s mobile products.

Foxconn became a huge company thanks to the great success of the iPhone and the iPad. The same source reports that this success has made them have an arrogant behavior even against Apple itself, which in combination with the problems created in many lots of iPhone 5 that they have produced have made Tim Cook very thoughtful.

Pegatron, who has sharply raised its 40% workforce recently, has made a better offer to Apple to build the cheap iPhone.

Dimitrios Georgoulas @ GreekAppleNews

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