New Supply Chain Is Rumored To Help iPhone 5se And iPhone 7’s Production

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According to a new report by DigiTimes, both longtime Apple manufacturing partners Foxconn and newcomer Wistron are expected to handle assembly of the company’s upcoming iPhone 5se, while Pegatron and Foxconn share the supply and manufacturing of the iPhone 7.

The splitting of the devices among its partners is said to allow Apple to “avoid risks,” according to publication site DigiTimes. The source notes that Wistron will receive just a “small portion” of the smaller iPhone 5se orders, while the majority will be handled by Foxconn.

In addition, DigiTimes reported that the information it received from supply chain and market watchers had noted that Apple is “looking to nurture Wistron to become an iPhone assembly house.” You can read what the source had posted below…

“Apple has been trying to separate its orders to different ODMs to avoid risks. In February 2015, the vendor added Compal Electronics as an iPad mini manufacturer, and Wistron to conduct iPhone touch panel lamination, and has recently outsourced a small portion of its new 4-inch iPhone orders to Wistron, looking to nurture Wistron to become an iPhone assembly house, according to some market watchers.”

It is also noted that Wistron will handle some assembly of Apple’s iPhone 7 Plus units with Foxconn, while Pegatron and Foxconn handle the 4.7-inch iPhone 7 model.

Having two suppliers working on each phone type increases competition for units and reduces Apple’s supply-side risk. This method is also said to counter problems with one manufacturer having problems with production, since the other working with them could help them with any issues.

Apple is expected to hold an event on March 15th to showcase the iPhone 5se, which will go on sale to the public on March 18th. The smaller device will arrive with a metal-backed, curved-edge design similar to the current iPhone 6s, which will sport new internal parts like an A9 processor and NFC support for Apple Pay.

Looking over to the iPhone 7, the device is expected to debut in the Fall. The iPhone 7 is rumored to lose the 3.5mm headphone jack, which will be replaced with another speaker, and Bluetooth wireless technology or Lightning headphones.

Source info: DigiTimes