WSJ: Apple adds two new suppliers out east in bid to increase production

WSJ: Apple adds two new suppliers out east in bid to increase productionWe’ve been hearing lots about Apple moving away from Samsung as a component supplier, with work reportedly being redirected to Taiwan’s TSMC, but those aren’t the only changes afoot out east.

Story goes that Apple has signed up two new guys, namely Taipei-based Wistron and Taiwan-based Compal Communications, in an effort to boost production.

That’s according to The Wall Street Journal, with sources adding that Foxconn has been “creating a headache for Apple”, what with the explosions and the suicides and the riots.

From Foxconn’s point of view, it’s reluctant to expand production for one single client, and furthermore unwilling to cut contract prices to secure more orders from Apple. Margins are already said to be under pressure.

As such, Foxconn will continue to focus primarily on the iPhone 5s, which is rumoured to be suffering yield problems on account of the Touch ID fingerprint scanner.

Meanwhile, Wistron will start mass production of the plastic-cased iPhone 5c later this year, joining Foxconn and Pegatron.

As for Compal Communications, they’re expected to start churning out iPad minis next year. They already put together tablets for Lenovo, and smartphones for Sony and Nokia.

Some interpret the happenings as a move away from Foxconn, but in any case, it’s just plain good sense to spread the supplier love.

Read more about: Apple iPad miniApple iPad mini 2Apple iPhone 5cApple iPhone 5s

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