Apple to Make Cheap iPhone at Pegatron, Not Foxconn

Foxconn is losing its Apple monopoly. Apple has signed up $7.4 billion-a-year Pegatron to build the low-cost iPhone it’s expected to bring to market later this year, according to the Wall Street Journal. Pegatron, which started making iPad minis last year and made some iPhones the year before, is another Taiwan-based contract manufacturer with factories in China. Actually it’s an Asustek spin-off. Foxconn had manufacturing problems with the iPhone 5 last year that scratched the metal cases and limited availability. It’s also not getting the cost advantages of scale like it used to because it’s been raising wages and improving working conditions following a string of suicides.

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