So long Foxconn.
Pegatron Corp., based out of Taiwan, has reportedly underbid Hon Hai (which owns Foxconn) for the right to manufacture the iPad 3 along with 15 million iPhone 4 units, according to a report in the Taiwan Economic News.
Exclusively handling assembly of iPhone and iPad and production of related parts, Hon Hai, the world`s largest electronic manufacturer by revenues, has dominated the supply chain for a time. But the status has changed this year, as Pegatron has just won Apple`s contract order for iPhone 5 production.
Sources say that huge iPad demand coupled with the explosion that hit an iPad 2 manufacturing portion of a Foxconn building earlier this year prompted Apple to look for a second iPad supplier to lower its reliance on Foxconn. And hence we have a new deal with Pegatron – which, yes, sounds like the name of an iPhone making transformer.