Quanta Computer is preparing to produce 17 and 19-inch iMacs in the third quarter 2002, reports DigiTimes.

The Taiwanese IT publication speculates that the news suggests a strengthening partnership between Quanta and Apple. Quanta shipped 235,000 new iMacs to Apple in the first quarter. Analysts predict that the company will ship up to 350,000 current units in the current quarter.

Other companies have been bidding to manufacture iMacs, the report claims, some offering contract prices up to 30 per cent lower than Quanta’s. However, Quanta holds the contract, and has revamped its facilities to cater for the complex assembly process needed for the units.

The report also reveals that Foxconn Electronics (the registered trade name of Hon Hai Precision Industry) supplies the new iMac’s cables and assembles part of its steel arm; and that Catcher Technology and ‘a supplier of Quanta’ supply zinc-alloy bases for the machine.