Foxconn could join Pegatron in producing Apple's CDMA iPhone

Industry sources told Taiwan Economic News that Foxconn, a subsidiary of Taiwan-based Hon Hai Precision Industry Co., will ship a CDMA edition of the iPhone 4 to Apple in 2011. Sources also suggested that Apple's attempt to tap into the CDMA market would bring the CDMA iPhone to Verizon Wireless and China Telecom.

Foxconn, Apple's biggest contract supplier, will reportedly share production evenly with Pegatron Technologies, with Foxconn's share of the order adding up to 15 million units in 2011. In May, Pegatron was rumored to have won the contract for the much-rumored CDMA iPhone, with production allegedly slated to begin in November.

The report may indicate that pent-up demand for a CDMA iPhone 4 would exceed either Foxconn's or Pegatron's manufacturing capacity. Apple sold a record 14.1 million iPhones last quarter, up 91 percent year over year, and analysts believe millions of customers are presently waiting for a CDMA iPhone.

Rumors of an early 2011 release of a CDMA-enabled iPhone 4 were bolstered earlier this month when The Wall Street Journal reported that production of the handset would begin by the end of 2010.

According to recent rumors, Apple could make an iPhone that works on both GSM and CDMA by using dual-mode chips from CDMA inventor Qualcomm. A report from Gigaom published Wednesday claims Apple is working with chip manufacturer Gemalto to develop a multi-carrier SIM card solution for the iPhone.

Also of note, the Taiwan report claims that Foxconn has already invested $299 million in constructing a factory in the Chinese city of Chengdu for production of the iPad.