iPhone 6, iPhone 5S Release Date: Cheaper iOS Devices on the Horizon as Apple Shifts Focus from Foxconn to Pegatron?
Apple is giving more production role to Chinese supplier Pegatron prior to the scheduled release dates of the iPhone 5S and the iPhone 6, a new report said.
The move was deliberate on Apple's part, The Wall Street Journal said, in order for the tech titan to widen its supply chain base, which in turn could lead to a number of benefits and chief of them are on-time delivery of shipments, better quality handsets and lower production costs.
The core intention is to diversify the supply system in manufacturing iPhones, iPads and other Apple gadgets.
It was also suggested that the Apple decision was partly influenced by a number of failures on Foxconn's side, specifically the nagging production delays that forced the tech giant to reschedule its product launch dates.
Also, the Taiwanese manufacturer was in some point overwhelmed by Apple's massive product orders that quality was somehow compromised. When the iPhone 5 was rollout last year, for example, numerous complaints of units with nicks and scratches emerged shortly, according to Apple Insider.
Eventually, Apple shipped back millions worth of iPhones to its Asian contractors, which to date remain dominated by Hon Hai Precision, owner and operator of Foxconn production facilities in China.
The new development, analysts said, could solve two key issues for Apple. One is for the tech giant to maintain the top quality of its gadgets. Another is the possibility of further reducing the costs of building them, which could translate to a more attractive price point once the products hit retail and distribution destinations.
With Foxconn having a firm grip on most of Apple's manufacturing contracts, these are remotely possible, analysts added.
Before this news came out, Pegatron has reportedly ramped up its production activities by hiring new workers by the hundreds of thousands for the second half of 2013. In note issued by KGI Securities analyst Ming-chi Kuo earlier this year, it was estimated that the company has been tasked to mostly produce the rumoured low-cost iPhone edition, which some reports referred to as the budget iPhone or iPhone Mini.
However, with more production roles set to be awarded to Pegatron, the chances are high that even the regular iOS smartphone builds, the iPhone 5S and the iPhone 6, are getting some price cuts without impacting on Apple's profit margins.
Reported to sport a Retina+ screen display and other minor bump ups, the iPhone 5S is rumoured for a September debut, along with its affordable version.
The phablet-size iPhone 6, on the other hand, is allegedly geared for a June 2014 release date.