Apple Orders 10 Million iPhone 5 Units in Preparation for its Big Launch [Rumor]

There is no doubt that Apple's next major smartphone release which is dubbed the iPhone 5 is currently on the hot seat. We have been getting reports about rumors left and right and it doesn't look like it is going to stop anytime soon, especially when the expected launch date draws to a close. Just last month there has been a report that Apple was diversifying their supply chain by adding more manufacturing contractors in addition to Foxconn, which is the main company who assembles the iPhone for many years now. This addition of more companies to assemble the iPhone is said to be Apple's preparation for the next iPhone's launch.
Apple Orders 10 Million iPhone 5 Units in Preparation for its Big Launch [Rumor]
Posted by Jack on August 4, 2011

 There is no doubt that Apple's next major smartphone release which is dubbed the iPhone 5 is currently on the hot seat. We have been getting reports about rumors left and right and it doesn't look like it is going to stop anytime soon, especially when the expected launch date draws to a close. Just last month there has been a report that Apple was diversifying their supply chain by adding more manufacturing contractors in addition to Foxconn, which is the main company who assembles the iPhone for many years now. This addition of more companies to assemble the iPhone is said to be Apple's preparation for the next iPhone's launch.

Now there's a report from Taiwan-based IT news website DigiTimes, that manufacturing company Pegatron has received orders to build 10 million units of iPhone 5. Pegatron is a Taiwanese manufacturing contractor that is said to be one of the companies that was hired by Apple to manufacture its next iPhone. According to the brief report of DigiTimes:

Pegatron Technology has landed orders for 10 million units of iPhone 5 to become the second ODM of the smartphone. Shipments will start in September, according to industry sources.

As iPhone gross margins are relatively small, Pegatron aims to compete for orders for iPad, MacBook Air and other Apple products and has increased production equipment and employment, the sources said.

This is presumably just for the initial release of the product and it won't be much of a surprise if Pegatron keeps manufacturing the iPhone 5 throughout its life cycle. For the most part, Foxconn is still expected to be the main iPhone manufacturer although one could only assume that Apple hired more manufacturers for two main reasons.

First, it is possible that this is Apple's way of cutting off manufacturing costs. Over the years, with higher labor and manufacturing expenses, it is quite plausible that Foxconn started to charge higher for their services. If anyone can recall just recently, Apple contracted Pegatron in order to assemble CDMA-based iPhones for Verizon Network. Second, this diversification of the Apple's supply chain could also mean that Apple is just trying to prevent any manufacturing mishaps and ensure a smooth launch for the iPhone 5. Considering just how in-demand the next iPhone will be, any shortages of products could be disastrous for Apple.

Yesterday we brought to you a report regarding a leaked document from Canadian carrier Telus. The document points to an October 1st release. On the other hand, this report suggests that the iPhone 5 will be available by September. Well for someone who's eagerly anticipating the release of the next iPhone, the sooner is definitely the better.