“Hon Hai Precision Industry Co Ltd., the world’s largest electronics contract manufacturer, faces growing competition from cross-town rival Pegatron Corp., a company that is just a quarter of its size by revenue,” Clare Jim reports for Reuters.

“Hon Hai, better known by its trading name Foxconn, draws an estimated 60 to 70 percent of its revenue from assembling gadgets and other work for Apple Inc.,” Jim reports. “Fellow Taiwanese manufacturer Pegatron wants to grab more orders to assemble the fast-selling iPhone and iPad from the California-based tech giant. Analysts say Pegatron offers more competitive pricing – at the expense of lower margins – and appears to be succeeding in pulling in more orders from Apple.”

Jim reports, “Pegatron’s announcement last week that it would increase its number of workers in China by up to 40 percent in the second half of the year fuelled market speculation that it would be the sole assembler for a widely expected cheaper iPhone… Pegatron currently makes older models for Apple, including the iPhone 4S and iPhone 4, It also manufactures the iPad mini.”

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