Apple this week said its iPhone partner, Pegatron, of Taiwan, has been put on probation for misuse of labor.

Pegatron is said to have overworked student workers at its factories.

For now, Pegatron's current business appears unaffected. But it may affect future iPhone orders for 2021 or 2022.

No doubt, Pegatron will need to rebuild trust with Apple (and other brands). There is a long road and hard work ahead.

Pegatron today is the world's 5th largest mobile phone ODM. It is a major third-party smartphone manufacturer.

If Apple cuts future Pegatron orders, ODM rivals, such as Luxshare or Foxconn, will only be too happy to step in and fill their boots. Pegatron may struggle to hang on to its fifth place.