AsiaBizTech is reporting that Apple is planning on shifting some of its manufacturing capacity. The publication, often a source of information on Appleis Asian manufacturing business, says that Apple will be shifting production of LCD displays from Quanta Computer to Hon Hai Precision Industry. The reason for the production shift stems from patent-related issues between the two Asian manufacturing giants. From the article:

Apple Computer Inc. recently has been reported to be shifting contracts for making its iMac computers with liquid-crystal display (LCD) monitors to Hon Hai Precision Industry Co., Ltd. from Quanta Computer Inc. as a result of Quantais failure to acquire some patented key components from Hon Hai.

According to the local media, Hon Hai has been contracted to supply components for Appleis iMac computer equipped with cathode ray tube (CRT) monitor, and developed some patented parts for iMacs. Hon Hai has not delivered the components to Quanta, which was contracted to make iMac computers in 2001, for unknown reasons.

Hon Haiis failure to supply Quanta with the crucial components has prevented Quanta from maintaining an even rate of production. Its difficulties have reportedly prompted Apple to decide to shift the orders to Hon Hai.

Thanks to Observer Antay for the heads up on this development. You can read more information in the full AsiaBizTech article, including other background information on Appleis manufacturing deals.