Apple reportedly to shift production outsourcing

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.

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