A subsidiary of the Taiwan manufacturer Asustek has began production of the next hot anticipated smartphone from Apple as reported by tech site Digitimes also of Taiwan, citing ‘industry source’. Digitimes do often report early about such things because of strong links to Apple’s makers. There have been recently one or two other outlets suggesting the same thing, but didn’t mention any manufacturer.

According to the report Pegatron of Asus is making the iPhone 5 at its factory in Shangahi. Digitimes also claim that Pegatron will be one of the two makers of the next Apples iPad, the other being Foxconn, another Taiwanese electronics maker.

Smartphone sales are expected by the industry to be at an all time high in the next quarter. While the iPhone has languished behind Samsung’s Android powered Galaxy smartphone in recent weeks, its expected the next version will make the bulk of sales and claw back some sort of lead. There have been no certain specification or features of the iPhone 5, but its thought it will for sure have a bigger screen, 4 inch with Retina display at 16:9 aspect ratio.