The largest and most well known manufacturer for Apple devices, Foxconn, has been criticized often for its poor working conditions, long hours, and possible mistreatment of employees. While the company has long been a manufacturing partner for Apple, the Cupertino firm is looking to diversify its manufacturing process, and according to KGI’s Ming-Chi Kuo, the company will be expanding its manufacturing to other companies next year.
This move would strengthen Apple’s power to negotiate with partners, as there would be more options for manufacturing. According to Kuo, the top manufacturers currently on Apple’s list are Compal Communications based in Taiwan, Wistron, and Inventec Appliances, which currently manufactures iPod devices for Apple.
While this move would be great for Apple and other manufacturing companies, it would hurt the current suppliers, Foxconn and Pegatron, although it is still rumored that Pegatron would be the main producer of the often rumored cheaper iPhone, or “iPhone Lite”.