Apple attracted to manufacturer Pegatron’s willingness to ‘accept thinner profits’

Apple Foxconn Partnership Analysis

While Foxconn has been slowly lessening its dependence on Apple by building its own branded tablets, it seems that Apple has been simultaneously lessening its dependence on Foxconn by shifting more production to Taiwanese company Pegatron. The Wall Street Journal reports that Apple is looking to diversify its production partners because Foxconn has been increasingly difficult for Apple to control as it’s grown into the world’s largest contract manufacturing company. The Journal says that Pegatron is a natural alternative to Foxconn because it “has been willing to accept thinner profits as it courts Apple’s business,” which is certainly important to Apple at a time when its own margins are coming under considerable pressure. The Journal’s sources expect Pegatron to “make the majority of iPad Minis sold this year, as well as the majority of the coming less-costly iPhone.”

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