Foxconn Electronics has been the primary manufacturer for iPhone and iPad orders, that was until earlier reports revealed Apple had placed 15 million next-generation iPhone 5 orders with Pegatron Technology.

Digitimes reports Foxconn has been working swiftly to raise its production efficiency and improve yield rates, in order to maintain business with its existing clients such as Apple, and to prevent competitors from stealing its business.

As Apple has started to diversify its manufacturing contracts, the company is attempting to minimize risks, according to sources. The shift to a Pegatron is dependent on its ability to deliver production volume, and meet strict guidelines from Apple.

An explosion at a Foxconn chemical plant affected Apple’s iPad supply chain recently. Foxconn employees have continued to make headlines over suicides and working conditions, which Apple has been working to improve.

I don’t think it matters which company lands contracts from Apple, as long as its employees have good working conditions. Product quality will always be up to Apple’s high standards long before they hit shelves.

[Digitimes]