We’re sure most of you guys already know that Apple typically uses Foxconn as the company that helps piece iOS devices, like the iPhone, together. With word on the street that Apple could be releasing a low-budget iPhone in the near future, we guess you couldn’t be blamed if you thought that the job would naturally go to Foxconn as well, but according to a report from The Wall Street Journal, it seems that might not be the case. Instead of going with Foxconn, they are reporting that Pegatron could be the company responsible for putting together the low-budget iPhone instead.
According to the report, this is apparently a move by Apple in order to help the Cupertino company expand their product lines and prevent supply chain disasters which could hold up production of their products, such as the inability to meet a certain level of quality, workers striking, equipment malfunction and etc. “Foxconn, in its growing heft as the world’s largest electronics contract company, was also getting more difficult for Apple to control, with incidents such as changing component sourcing without notifying Apple, people familiar with the matter said. At the same time, Foxconn became frustrated with the growing complexity of Apple products, such as the iPhone 5, which is difficult to make in the volumes Apple needed.”