Apple reportedly to shift production outsourcing

By Freddie Pierce
Never one to be left behind in supply chain innovation, Apple is revamping its long-term strategy for iPad and iPhone production. According to Digitime...

Never one to be left behind in supply chain innovation, Apple is revamping its long-term strategy for iPad and iPhone production.

According to Digitimes, the technology company is reforming its tablet and Smartphone outsourcing strategy. Pegatron Technology is being chosen to handle iPad orders in the future, while beleaguered Apple partner Foxconn will focus its efforts solely on the iPhone.

Apple has reportedly already sent “a small volume of orders” to Pegatron for the iPad 3, which is expected to be released sometime in March.

As we reported last week, Apple’ iPad 4 is expected to be released in October. According to Digitimes, Pegatron’s role in the Apple supply chain is expected to greatly increase during the production months for the company’s fourth-generation tablet computer.

Late last year, Pegatron came under fire for an explosion at a subsidiary in Shanghai, where 61 workers were injured.

Foxconn, which has had its fair share of workplace safety issues, will gradually cede orders for the iPad to Pegatron. It’s way too early to speculate if Apple is moving away from its long-term partnership with Foxconn. Digitimes took a different angle when explaining Apple’s new outsourcing strategy.

“Apple's new strategy is meant to decrease risk and increase the quality of its products and the company has already visited Pegatron's plants in China several times recently to ensure the smoothness of the shipment process,” the Taiwanese website explains.

Click here to download Supply Chain Digital’s iPad app!

Share

Featured Articles

McKinsey report urges firms to avoid ad hoc supply fixes

McKinsey report into ongoing supply shocks & disruptions urges CEOs to proactively build long-term resilience, not rely on short-term supply fixes

Firms 'over-reached on sustainability targets' - Bain report

Bain & Company report released during Davos summit suggests 31% of businesses did not come close to hitting ambitious 2020 carbon emission targets

Accenture supply heads probe value chain resilience

Accenture's Maria Rey-Marston & Stephane Crosnier say best way to achieve supply resilience is real-time dynamic visibility, with people at its heart

Weekly news round-up across supply, logistics & procurement

Digital Supply Chain

UST webinar on managing supply risk available on-demand

Supply Chain Risk Management

Global land, sea and air logistics news round-up

Logistics