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Apple's diversification of its manufacturing with Taiwanese supplier Pegatron added to Foxconn (Hon Hai)

03/25/2014

With the need to strengthen manufacturing Apple is diversifying away from Taiwan's Foxconn. Samsung does its own manufacturing giving it more flexibility and cost advantage. Apple is moving work on the mini iPads and lowcost iPhones to Pegatron. Pegatron operates at margins of about 0.8% compared to 1.7% for Foxconn. It is also gearing up to manage the greater complexity of the iPhone 5 and successor models.

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