"Apple Computer may shift the production of the 17-inch PowerBook from current contractor Compal Electronics to Quanta Computer in the first quarter of next year," according to DigiTimes. The publication's sources are citing cost-sharing disagreements between the two corporations.
In addition, the article confirms previous rumors that the next-generation iMacs would be manufactured by Quanta and announced in early 2004.
DigiTimes carries a variable track record as of late. The article also continues with references to Apple's current 15.4-inch PowerBook, which none exists. The publication began publishing articles in June, touting an imminent release of a 15.4-inch PowerBook. Apparently, the publication is unaware that this information was never accurate. Apple's mid-level PowerBook continues to sport a 15.2-inch display.
Update: An AppleInsider source has confirmed the production shift. According to the source, the move was announced internally last week among the Apple PowerBook division. Quanta is expected to issue a press release on the subject.