iPad mini 2 and iPhone 5C production to increase as Apple adds new suppliers

Apple has reportedly on the cusp of certifying two new assembly partners in Asia to help increase production of the iPhone 5C and iPad mini 2.

There should be greater availability of the iPad mini 2, which is currently delayed due to manufacturing issues with the new Retina display, original iPad mini and plastic-bodied iPhone 5C by the end of the year as Apple is set to sign deals with two new manufacturing partners.

According to a report from the Wall Street Journal, Taiwan-based manufacturers Wistron and Compal Communications will join existing partners Foxconn and Pegatron to help build Apple tablets and smartphones.

Wistron will reportedly be responsible for production of iPhone 5C handsets, while Compal Communications will build the iPad mini 2.

This will leave Foxconn, Apple’s primary production partner, to focus on the iPhone 5S – Apple’s latest and exceedingly popular flagship.

Apple’s relationship with Foxconn is currently a little strained due to labour issues and disagreements over manufacturing defects in the iPhone 5S batteries. With around 40 per cent of Foxconn’s annual revenue coming from Apple, it risks losing a major income stream.

“[Foxconn] Chairman Terry Gou is not willing to cut contract prices substantially to get more orders from Apple. [Foxconn] 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,” said an anonymous Foxconn executive.

“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.”  

The new iPad Air 9.7-inch tablet went on sale on Friday, November 1 and hasn’t suffered from production issues or stock shortages as yet.

Next, read our iPad mini 2 Retina display vs iPad Air comparison.

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