Apple is switching from its long-term iBook manufacturer Alpha-Top to Hon Hai Precision Industry, Bloomberg News claims.

Hon Hai has hired ten engineers from Elitegroup Computer Systems, which controls Alpha-Top, and plans to hire more, says the Commercial Times, cited in the Bloomberg report.

Taiwan's computer-manufacturing market is becoming more competitive as companies there engage in price battles to seize market share during PC industry slow down, industry watchers claim.

Manufacturers in Taiwan are under pressure to reduce production costs, as their clients in the PC industry attempt to woo customers with attractive product prices, reports claim.

Hon Hai Precision Industry manufactures components for a variety of other firms. However, Taiwanese vendors are opting for components from the company's competitors "in an attempt to thwart its notebook plans", says Bloomberg.