Apple to dump Foxconn for low-cost iPhone; moving to Pegatron: Report
Apple to dump Foxconn for low-cost iPhone; moving to Pegatron: Report
The low-cost iPhone will be assembled by a relatively unknown supplier Pegatron, which has developed a limited number of iPhones and a major portion of iPad minis in the past, says a report.

New Delhi: The highly-rumoured low-cost iPhone reportedly will not be manufactured by Taiwanese manufacturer Foxconn, which is widely known as one of Apple's key manufacturing partners. The Wall Street Journal reports that the low-cost iPhone will be assembled by a relatively unknown supplier Pegatron, which has developed a limited number of iPhones and a major portion of iPad minis in the past.

The report says, Apple is planning to strengthen ties with Pegatron, thereby making it the primary assembler of its new, low-cost iPhone, which is expected to debut later this year.

Citing people familiar with the matter, the report states that Apple is planning to switch for a number of reasons. One of them is that the iPhone 5, manufactured by Foxconn, was prone to scuffs and scratches.

The device could resemble the existing iPhone, but might use less expensive materials, such as a shell made of polycarbonate plastic.

The product would represent the first time Apple has diversified its line of smartphones with significantly different models since launching the original iPhone in 2007. The company faces pressure from rival smartphone-makers such as Samsung Electronics whose products use Google Inc's Android operating system.

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