Hon Hai Precision Industry has replaced LG Electronics as the supplier of Apple's iMac and eMac desktop machines.

The move follows LG Electronics’ decision to to focus on “higher profit-margin laptop computers”.

An LG Electronics spokesman said: "Apple's orders have been minimal, and we want to better serve our major notebook computer buyers such as IBM and Hewlett-Packard."

Hon Hai Precision Industry will be picking up the tab of an estimated 1million unit shipments in 2003.

Hon Hai spokesman Edmund Ding said: "We do not comment on contract-related reports. We will not confirm or deny the report. "

Apple officials in Taiwan were unavailable for comment.