Report: Pegatron to be primary assembler of budget iPhone

Apple will use Pegatron — not Foxconn — as its primary assembler for the company’s new low-cost iPhone “expected to be offered later this year,” according to a new report. A rival of Foxconn, Pegatron was a “minor producer” of iPhones in 2011 and also made iPad minis last year. Sources say Apple decided to use Pegatron to diversify its manufacturing after Foxconn had issues with scratches on the iPhone 5’s metal casing, and because Apple is expanding its product lines. While some claim Pegatron will accept smaller profits to produce Apple products, neither company has commented. [via The Wall Street Journal]