Apple Will Reportedly Expand iPhone Production to Foxconn Subsidiary

Apple Will Reportedly Expand iPhone Production to Foxconn Subsidiary

Apple will reportedly begin using Foxconn International Holdings, a subsidiary of Foxconn Technology, and the largest cellphone manufacturer in the world, to build certain iPhone models. This would be the company’s first-ever Apple partnership.

AppleInsider:

Shares of Foxconn International Holdings (FIH) rose more than ten percent on Friday local China time, after a brokerage report claimed the company may start manufacturing an iteration of Apple’s iPhone within the next few months, reports Reuters.

Despite not having any previous or current business dealings with Apple, Daiwa Capital Markets says FIH is likely to get iPhone orders “soon.” The Foxconn Technology subsidiary is the world’s largest maker of mobile phones, assembling devices for Nokia, Huawei, and ZTE.

“Our industry research indicates that FIH is likely to start producing iPhones in late 2012 or early 2013,” Daiwa’s report said.

This news follows on the heels of reports saying that quality control issues have hampered Foxconn’s ability to produce enough iPhone 5 units to keep up with demand.

It is reported that Apple’s return to a metal back for its new iPhone 5 has caused issues with nicks and scratches appearing on units right out of the box. Referred to as “Scuffgate” by an eager press, the issues have required Foxconn to employ stricter quality control measures, which has produced lower yield rates.

FIH has not commented on the report, but said it will release an official statement later today.

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