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Apple To Use Pegatron For iPad 2 Followup, Report Claims

Apple is apparently wanting to reduce its dependence on Foxconn, its current manufacturing partner for the iPad 2, and is looking around for another manufacturer for the third generation iPad.

Pegatron is the company that is set to outbid Hon Hai's Foxconn and moreover, the new partner is being awarded an exclusive contract to produce Apple's next generation iPad, according to China Economic News Service.

By switching to Pegatron for the next iPad's supply, Apple is looking to reduce its depndence on Foxconn, so that the production of the tablets won't be jeopardized, as has been the case with Foxconn, for instance, with the recent explosion at one of its factories and the series of employee suicides.

Despite this turn, Apple's other partners and suppliers will remain the same: TPK Holdings to produce the touch panels, Simplo Technology and Dynapack for the battery pack modules and Largan Precision for the camera lenses.

If Apple decided to have two manufacturers for its third iPad meeting the demand might be easier, but it doesn't mean the next tablet is anywhere near. We probably won't see an iPad release this year, but rather next year, with a delay due to component shortages likely, China Economic Times reports.