Apple boosts Asian suppliers for smartphones and tablets

DPA San Francisco | Updated on March 12, 2018 Published on November 07, 2013

Apple is beefing up its contract manufacturing partners in Asia to boost production of its popular smartphones and tablets, the Wall Street Journal reported on Wednesday.

The report said that Apple plans to outsource production of its iPhone 5C later this year to Taiwan-based company Wistron Corp, while production of the iPad mini will go to Compal Communications, also based in Taiwan.

Compal is also readying a plant in China to make iPhones, though no contract with Apple has yet been signed, the report added.

The measures reflect changes in Apple’s relationship with its main supplier Foxconn, which is now concentrating on making Apple’s flagship smartphone, the iPhone 5S. The report said that tensions are rising between the two companies over a high defect rate on the new phones, and over Foxconn’s controversial labour practices.

The report also said that Foxconn was unwilling to cut prices to snare new Apple business, and that it was wary of becoming too reliant on one customer.

On the other hand Apple needed to boost its suppliers in order to better compete with Samsung and other companies making mobile devices based on Google’s Android operating system, the report said.

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Published on November 07, 2013
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