July 29, 2011
Foxconn, Apple's supplier of the iPad 2 may have lost their contract for the iPad 3 to Pegatron, a Taiwan-based manufacturer. According to a report on CENS.com, a Taiwan Economic News website, Pegatron outbid Hon Hai, who owns Foxconn, for the production of the new iPad. Foxconn is one of the world’s largest electronic manufacturers, and has worked closely with Apple in the past. They have been the primary supplier for the iPhone and iPad. report also indicated that even with this switch to Pegatron, the current Apple supply chain would not be shaken up. The current manufacturers of the various components will continue with their production. Apple could not keep up with the demand for the iPad 2 when it was released, which may have something to do with this rumored switch. In addition, this may indicate that Apple wants to reduce their dependence on Foxconn, especially after the explosion of China’s Chengdu factory earlier this year. This terrible event led to injuries and the deaths of several workers. This rumor may be a sign that Apple is looking at two different manufacturers instead of just one. With the release of the iPad 2, Apple was unable to keep store shelves stocked, which frustrated consumers. A dual manufacturer arrangement could help alleviate those issues for the iPad 3. No matter what Apple might be doing, hopefully we will see the supply and demand issues managed better with the release of the next iPad, which many believe will be by Thanksgiving.