Sorry, Foxconn: Apple's Dating Other Manufacturers
Foxconn's getting expensive as it improves labor conditions
By Kevin Spak, Newser User
Posted May 30, 2013 7:40 AM CDT
In this file photo taken on May 22, 2010, visitors to a job fair walk past the Foxconn recruitment area in Shenzhen in south China's Guangdong province.   (AP Photo, File)

(Newser) – Apple isn't exactly breaking up with Foxconn, its longtime controversial manufacturing partner. But after seeing the production glitches that plagued the iPhone 5, it's decided to have an open relationship. Tim Cook has been shifting more and more work from Foxconn to the relatively obscure Pegatron Corp, the Wall Street Journal reports. Pegatron already handles some iPad Mini and iPhone production, and will be the exclusive producer of a new, low-cost iPhone debuting later this year.

Foxconn has been getting more expensive as it works to improve work conditions, analysts point out, while Pegatron has been willing to accept thinner profit margins. Sources also say that Foxconn has annoyed Apple by doing things like switching component sourcing without telling it, and that Foxconn is unhappy with the increasing complexity of Apple's gadgets. Cook also isn't as close with Foxconn co-founder Terry Gou as Steve Jobs was. Pegatron isn't completely new to Apple either; an earlier incarnation of it handled the first generation iBooks.

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Showing 3 of 3 comments
logicaldood
Jun 1, 2013 2:54 AM CDT
How about abusing tax loopholes and pay your fair share of taxes? Seems like the rich can get away with loopholes in the tax laws because the government made them too complicated and you have to be an attorney to interpret them. Then again, the U.S. needs to stop giving money to these damn foreign government that DON'T LIKE US ANYWAYS. Anyone with half a brain knows that you cannot buy anyone's friendship.
odowd80
May 30, 2013 11:45 AM CDT
Its good to have a diverse supply chain. Their dependency on Foxconn put a heavy drag on iPhone 5 sales last fall.
Buckshot
May 30, 2013 9:33 AM CDT
Maybe Tim Cook will bring those jobs home it's not like we couldn't use them? Naw that might effect his personal compensation for awhile he'd never do that you can never have enough money. He should move to China to be with his brothers.