Will This Help Apple Solve Supply Problems?
A report made Monday in Taiwan’s Economic Daily News indicates that Apple (NASDAQ:AAPL) is diversifying its supply chain in preparation to meet increasing demand for the newest generation of devices. The high demand for Apple products at their launch frequently outweighs supply, and the company wants to be able to combat component shortages that would slow production.
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According to the front page of the newspaper, reports from two local securities firms claim China-based Pegatron secured 50 to 60 percent of orders to assemble the as-yet-unannounced 7.85-inch iPad mini ahead of its possible October release. Previously, Apple’s production partner was Taiwan-based Foxconn, which handled all iPad manufacturing.
The story, reported initially by online tech publication Engadget, said that Pegatron will also manufacture some of the 53 million iPhone 5s expected to be sold this year, beginning in the fourth quarter.
Monday’s report follows closely behind a separate report from The Korean Economic Daily, which cited industry sources laiming Apple has cut orders for the Samsung (SSNLF.PK) memory modules to be used in the upcoming iPhone. In place of Samsung units, parts will be made by Toshiba, Elpida Memory, and SK Hynix. According to the publication’s source, Apple has been attempting to decrease its reliance on Samsung parts for months.
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