WSJ: Apple adds suppliers to boost iPhone 5c and iPad mini production

[RaduTyrsina]

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According to a new report from The Wall Street Journal, Taiwan-based contract manufacturers Wistron and Compal Communications will join Apple’s current suppliers, Foxconn and Pegatron, to boost the iPhone 5c and iPad Mini production. Compal will build Apple's iPad mini while Wistron’s job will be to build the colorful smartphone.

WSJ cites a Hon Hai (mother company of Foxconn) executive who said the following:

Hon Hai Chairman Terry Gou is not willing to cut contract prices substantially to get more orders from Apple. Hon Hai is also aware of the risk of building gigantic production capacity for a single customer so it is adopting a more cautious stance on expanding production. Apple has raised this quarter's iPhone 5S orders from Hon Hai as demand has been stronger than expected. But it takes time to boost production capacity and Apple can't find other assemblers to increase production to meet demand immediately

So, we can see that due to the high demand for the iPhone 5s, Foxconn will be designated to focus on production of Apple’s flagship smartphone. WSJ’s sources don’t reveal what the specific model of iPad mini Compal will produce, but we already know that the upcoming Retina display iPad Mini is expected to be in short supply.

Therefore, most likely, to avoid short supply issues and to keep customers happy, Apple is adding Compal as a new contract manufacturing partner for the production of the Retina display iPad Mini. Taiwan-based Compal Communications also makes tablets for Lenovo and smartphones for Nokia and Sony.

Source: WSJ