Long-time Apple contractor Hon Hai, parent company of Foxconn, appears to have lost a potentially lucrative contract, with competitor Pegatronunderbidding the company to secure the right to assemble the iPad 3.
According to a report from Taiwan Economic News, and spotted by the Boy Genius Report, Apple is shaking up its arrangements with manufacturing partners.
Apple is reportedly commissioning third-party manufacturers to construct the iPad 3 for a November release.
Foxconn, however, is likely to retain at least some portion of Apple’s contracts, with the company actively expanding its production capacity, building new plants in China and Brazil.
The company has had its share of terrible press over the past year, with reports of suicides, explosions, draconian working conditions, poisonings and poor environmental performance.
Boy Genius also reports that Apple will retain a ‘the majority’ of its component suppliers, including Largo and Dynapack International Technology for batteries, Largan Precision for camera lenses, TPK Holdings for touch panels and Foxconn for its outer casings.