Hon Hai Precision Industry Co. Ltd. has replaced LG Electronics Inc. as the supplier of Apple Computer Inc.’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.