China-based Hon Hai Precision Industry, or Foxconn, could possibly be in danger of losing much of its manufacturing orders with Apple, according to iDownloadBlog. The story comes via a Reuters report that says that Pegatron, which previously built the iPhone 4 and 4S, and currently makes the iPad mini, is looking to build the newer versions of Apple’s iPads and iPhones. And just how will Pegatron manage to achieve this prize? Well, Reuters says that the Taiwanese company is prepared to cut its margins in favour of “more competitive pricing”, and Reuters goes on to say that this strategy seems to be working for Pegatron, who has succeeded in winning more orders from Apple. Reuters adds that Pegatron hopes that a greatly increased volume of orders will help the company to improve its currently poor margins, which are presently “a lot lower” than those of Foxconn. This could explain why the Pegatron CEO was so quick to speak up on Apple’s behalf last week and rubbish the Bloomberg story about the rumoured slowing of iPad mini demand.
Source: Apple said to move from Foxconn to Pegatron