Rumor Claims Apple Will Expand iPhone Production To Foxconn Subsidiary

As is always the case with the new version of the iPhone, demand has been greater than availability for the new smartphone. Combine that with the fact that Apple has reportedly slowed iPhone 5 production in an effort to fix issues with easily scratched aluminum and a new rumor that surfaced this week makes sense. According to the new rumor, Apple has expanded iPhone 5 production to Foxconn International Holdings.

Foxconn International Holdings is a subsidiary of Foxconn Technology. If the rumor were true, this would mark the first time Foxconn International Holdings has had an Apple partnership. Reports indicate that shares in Foxconn International Holdings rose within 10% after a brokerage report claiming the company could start manufacturing a version of the iPhone within the next few months.

It remains unclear exactly what version of the iPhone Foxconn International Holdings might build. It certainly wouldn't be out of character for FIH to land a contract with Apple. The subsidiary is the world's largest manufacturer of mobile phones, FIH already manufactures phones for Nokia, Huawei, and ZTE.

The new iPhone 5 has had problems with easily scratched aluminum with some reports indicating that units coming out of the box are already scratched in some instances. Apple had similar complaints about the iPhone 4S with its glass back being too easy to crack or break. No official statement on FIH being contracted to produce a version of the iPhone has been offered from Foxconn or Apple at this time.

[via Apple Insider]