Skip to main content
  1. Home
  2. Mobile
  3. Legacy Archives

Apple turns to Pegatron for low-cost iPhone production, supply chain shifting away from Foxconn

Add as a preferred source on Google

iphonesApple looks to be shifting away from manufacturing giant Foxconn – also known as Hon Hai – as it seeks out a new player in the supply chain to take charge of its expected low-cost iPhone. The Taiwan-based company has until now enjoyed a virtual monopoly on the production of Apple’s mobile products.

The Wall Street Journal reported Wednesday that the Cupertino company is looking to another Taiwan-based outfit – Pegatron – to give it more balance in the supply chain and to diversify risk following issues with the iPhone 5 where some handsets were leaving the factory with scratches and other damage. Delays in its production also occurred.

Recommended Videos

Speaking last November, several months after the iPhone 5’s launch, Foxconn boss Terry Gou admitted that “it’s not easy to make the iPhones. We are falling short of meeting the huge demand.”

Former Apple boss Steve Jobs was said to have enjoyed something of a special relationship with Gou, and was reportedly more forgiving of troublesome incidents involving Foxconn – “changing component sourcing without notifying Apple” is highlighted as one such example by the WSJ – but with Tim Cook in charge, things look to be moving in a different direction, although Foxconn will of course continue to produce goods for the tech company.

“People familiar with the matter” also told the WSJ that the move towards Pegatron comes as Apple seeks to diversify its product range in the face of tough competition from the likes of Samsung, perhaps further evidence that the tech giant is prepping the launch of a low-cost iPhone, primarily for emerging markets.

Wednesday’s news backs up a report earlier this month that Pegatron is preparing to increase its workforce by some 40 percent – it currently numbers around 100,000, a fraction of Foxconn’s – with company president and CEO Jason Cheng saying his firm expects that communication products (ie. phones) will account for 40 percent of its profits for the second half of 2013.

Foxconn has for years been Apple’s main manufacturer, assembling millions upon millions of iPhones, iPads and other iProducts for sale around the world. It has faced much criticism over the years with reports of apparent worker suicides caused by challenging working conditions. Pegatron can expect to come under similar scrutiny as it prepares to greatly expand its workforce and take on bigger contracts with one of the world’s most famous tech companies.

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Topics
Snapchat Planets Meaning: Order, Rankings, and How Friend Solar System Works
Snapchat Planets turns your best friends list into a solar system, and yes, your orbit says a lot
Snapchat Planets being shown on the Snapchat app on iPhone.

Snapchat+ includes several exclusive features, but few have generated as much curiosity as Snapchat Planets. Part of the app's Friend Solar System, it transforms your Best Friends list into a planetary ranking, assigning each of your top eight friends a planet based on how often you interact.

From Mercury, which represents your closest friend, to Neptune, which represents your eighth closest, the system offers a quick visual snapshot of your interactions. But what do the different planets actually mean, and how does Snapchat decide who gets which one?

Read more
How to use WhatsApp Web
We'll show you how to use WhatsApp on your desktop or laptop
WhatsApp Web

As one of the most popular messaging services, you’ve already heard of WhatsApp. From its humble beginnings in 2009—two years before Apple introduced iMessage—to its acquisition by Facebook (now Meta) in 2014, WhatsApp has become the dominant messaging platform around the globe.

In recent years, it's grown even more potent with new features like video messages, self-destructing voice messages, the ability to edit sent messages, and more. We even finally got an WhatsApp iPad app in May 2025.

Read more
What is WhatsApp? How to use the app, tips, tricks, and more
From setting it up to mastering hidden features, here is your complete guide to WhatsApp.
WhatsApp app store listing open on iPhone

There's no shortage of messaging apps out there. The past decade has given us more options than we know what to do with, largely because smartphones demanded something better than plain old SMS.

Both the App Store and the Play Store are packed with apps that promise to revolutionize the way we communicate. Most of them didn't make it. The truth is, a messaging app is only as good as the number of people using it, and most apps never cross that threshold.

Read more