Sources says Apple (AAPL -0.7%) has selected Taiwan-based contract manufacturer Pegatron to produce 'at least' 10M iPhone 5 units. Given Apple will probably also use Foxconn (OTCPK:FXCNY) to produce the device, the initial batch of the model could be much bigger. Pegatron is trying to fulfill its existing 12M to 15M iPhone 4 order.