There seems to be a tug of war going on between Pegatron and Foxconn in the background, as the former tries to grab a piece of the lucrative market to build the successor to the Apple iPad 2 tablet, a process that is likely to start at the end of the year.
Monica & Steve Chen of Digitimes (opens in new tab) were told by industry sources that Apple has been reportedly trying to add a second manufacturer for the iPad 3 to reduce the risks associated with a single source, with Pegatron the most likely candidate.
However, it seems that Foxconn has been persuasive enough to change Apple's mind for now. Pegatron though, which is expected to build around 10 million iPhone 5 (or iPhone 4S) units, is also apparently trying to grab orders for the iPad 4 as well as Apple notebooks and desktop computers from its rival in 2012.
Given how disproportionate demand was for the launch of the iPad 2, it could well mean that Foxconn will be looking at long term solutions to ease supply including building more factories, some of which will be located closer to key markets like North America.
Foxconn's allegiance to Apple when it comes to tablets means that there might be an opportunity for other tablet makers to enlist the likes of Pegatron to build their own.