... Pegatron has, however, been
growing rapidly as Apple has been seeking to balance and expand its supply chain to provide more stability and flexibility. ...
Where "seeking to balance" means "keeping Foxconn honest."
And "expand its supply chain to provide more stability and flexibility" means "preparing for the new 2-model iPhone lineup, without the need to make any iPhone model for more than one year."
This year: "5S" and "5C"
iPhone 5S (16GB $199 / 32 GB $299 / 64GB $399: A7 chip, fingerprint sensor)
iPhone 5C (16GB $99: A6 chip, no fingerprint sensor)
iPhone 5C (8GB $0)
2014: "the new iPhone" and "the new iPhone C"
iPhone (16GB $199 / 32 GB $299 / 64GB $399: A8 chip, new features)
iPhone C (16GB $99: A7 chip, minus some key high-end iPhone features)
iPhone C (8GB $0)
2015: "the new iPhone" and "the new iPhone C"
iPhone (16GB $199 / 32 GB $299 / 64GB $399: A9 chip, new features)
iPhone (16GB $99: A8 chip, minus some key high-end iPhone features)
iPhone (8GB $0)
Meanwhile, iPad and iPad mini will likewise be replaced by each year's new models.
This year:
iPad (4th gen) production stops, iPad (5th gen) production starts.
iPad mini (1st gen) production stops, iPad mini (2nd gen) production starts.
This would give Foxconn and Pegatron more floor space for new model production, since
there would be only 2 production lines instead of 3 (new iPhone, 1-year old, and 2-year old.)
It would also solve the bizarre iPhone naming problem by next year.
Just my $0.02.