John Paczkowski

Recent Posts by John Paczkowski

Apple Doubling Down on Manufacturers for iPad 3?

Apple is diversifying its supply chain in advance of some big fall product launches. Industry sources tell Taiwan Economic News that the company may soon tap Pegatron to manufacture the iPad 3, alongside longtime iOS device partner Foxconn.

“Industry insiders believe that Pegatron has a good chance to win this [iPad] business, because of its integrated production network specifically for the production of tablet PCs,” the publication explains. “Already, the company has produced three or four different models of tablet PCs and e-book readers for several globally prominent customers, including Asus and Toshiba. Further, the increasingly close partnership that Pegatron has built up with Apple after a year of cooperation in the production of the iPhone’s CDMA edition will also encourage Apple to place orders with Pegatron for the iPad 3.”

Not an entirely unexpected move, as Apple had been rumored to be considering lining up additional manufacturing partners in hope of tempering the supply constraints that have plagued iPad launches in the past. As Apple COO Tim Cook said during the company’s recent earnings call, “We sold every iPad 2 we could make this quarter. There is no shortage of demand.”

Presumably, adding a second manufacturing partner would increase supply, allowing Apple to satisfy that demand and driving its profits even higher. And an arrangement like this will also go a long way toward mitigating the company’s vulnerability to supply chain disruptions, whether they be caused by natural disasters or tragic industrial accidents.

[Image credit: Appertunity]

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