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Foxconn fails to pick up iPad 3 contract

Chinese manufacturer will not produce the iPad 3, Pegatron takes over

Foxconn has not won the contract to build iPad 3's, instead, Pegatron will be manufacturing the next generation tablet.
Foxconn has not won the contract to build iPad 3's, instead, Pegatron will be manufacturing the next generation tablet.

Foxconn will no longer produce the Apple iPad 3, the company has lost the production contract, with Apple instead opting for Taiwanese manufacturer Pegatron, according to the Press Association.

Foxconn's parent company Hon Hai was underbid by Pegatron for the exclusive rights to build Apple's next generation tablet device, breaking the hold that its Chinese rival had with the iPads 1 and 2.

Pegatron recently boasted that it is manufacturing massive quantities of the iPhone 5 and, at the beginning of July rumours said that the firm was contracted to build 15 million devices.

Previously Pegatron's only work for Apple was to supply four million CDMA iPhone 4s.
Foxconn has been attracting headlined for all the wrong reasons recently after several workers in its Chinese factories committed suicide and then there was an explosion and fire at the plant which produced iPad 2s.
Apple has also reportedly dropped Samsung as its chip supplier for the iPad 3 in favour of Taiwan Semiconductor Manufacturing Company (TSMC).