Apple has chosen Taiwanese contract manufacturer Pegatron to be the primary assembler of a low-cost iPhone expected to be released later this year, people familiar with the matter told the Wall Street Journal. Pegatron became a minor assembler of iPhones in 2011 and started making iPad Mini tablets in 2012. Apple is said to be diversifying from Foxconn (Hon Hai) which has been its exclusive producer of iPhones and iPads for years. The shift is partly attributed to Foxconn's manufacturing glitches with the iPhone 5 last year and Apple's decision to increase its product lines under increasing competition from Samsung and others. According to analysts, Pegatron is also willing to accept smaller profits. Neither company would comment on the matter.
