Apple Giving Pegatron Orders to Reduce Supply Risk
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Apple Inc. is giving orders for its new lower-priced iPhone to Pegatron Corp. as part of a strategy to reduce risk and diversify its supply chain, said Vincent Chen, an analyst at Yuanta Financial Holdings Co.
Its new handset will have a plastic casing and lower-cost components and may be released next quarter, said Fubon Financial Holding Co. analyst Arthur Liao. Taipei-based Pegatron assembles some iPhone 4 and 4S models while Hon Hai Precision Industry Co. makes the iPhone 5.