Tags Pegatron

iPhone decline hits Apple suppliers, say they see no upside in immediate sight

Apple’s decline in iPhone sales is unsurprisingly having a knock-on effect on its key suppliers, with the WSJ reporting that Foxconn, Pegatron, Sharp, Japan Display and Sony have all reported falling profits or losses as a result.

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Filed under: AAPL Company, iOS Devices Tagged: Apple suppliers, Foxconn, iPhone, iPhone 7, iPhone sales, japan display, Pegatron, Sharp, Sony

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Ben Lovejoy

May 12th

Apple

Mac

Majority of iPhone/iPad workers at Pegatron’s Shanghai factory exceed 60-hour work limit, claims China Labour Watch

FILE-In this Wednesday, May 26, 2010, file photo, staff members work on the production line at the Foxconn complex in Shenzhen, China. Foxconn, the company that makes Apple’s iPhones suspended production at a factory in China on Monday, Sept. 24, 2012, after a brawl by as many as 2,000 employees at a dormitory injured 40 people. The fight, the cause of which was under investigation, erupted Sunday night at a privately managed dormitory near a Foxconn Technology Group factory in the northern city of Taiyuan, the company and Chinese police said.(AP Photo/Kin Cheung, File)

China Labor Watch says that an undercover investigation at a Pegatron factory manufacturing iPhones and iPads found that 58% of workers there were working in excess of 60 hours a week – the limit laid down by Apple for its suppliers. It also said that overtime, which is supposed to be voluntary, is effectively mandatory, reports CNET.

The report claimed that the standard shift was nine hours, but that – between September and December last year – staff worked an additional minimum of 20 hours of overtime each week, usually split up between an extra two hours each week day and one 10-hour shift on Saturdays. […] This overtime was essentially a requirement, according to the investigator, who claimed to be told by a trainer that working eight-hour shifts five days a week “does not conform to our hiring requirements.”

The report says that many workers in any case said that significant overtime was necessary to meet their living expenses, with wages at the local minimum wage of around $1.85 per hour.

The report also alleges that Pegatron falsifies documents shown to Apple to give the appearance of complying with supplier audit requirements while failing to do so in reality.

Despite providing only about eight hours of pre-job safety training—where Chinese law requires 24 hours—Pegatron forces each new worker to sign a form that “certifies” that she has undergone 20 hours of safety training. A worker also must sign a trainer’s name on the form. The factory has workers quickly copy answers to the safety information quiz. These falsified forms are the types of documentation that are provided to Apple in their audits.

The report notes some improvements since 2013, with partial improvements in sick leave and the ending of claimed discriminatory hiring practices. CNET says that neither Apple nor Pegatron responded to requests for comments on the report.

It’s not the first time that China Labor Watch has criticized working conditions in factories run by Apple’s suppliers. A report last year on another Apple supplier detailed claims of 22 violations ranging from hiring practices to safety concerns.

A BBC documentary based on an undercover investigation at another Pegatron factory prompted Tim Cook to say he was “deeply offended” by the claims and the show’s failure to include facts and perspectives provided by Apple.

Apple publishes an annual Supplier Responsibility Progress Report in which it details the issues it faces in its supply chain and the steps taken to address these.

Photo: AP Photo/Kin Cheung


Filed under: AAPL Company Tagged: Apple Supplier Responsibility Report, Apple suppliers, China Labor Watch, iPad, iPhone, Pegatron, Supply chain

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Ben Lovejoy

October 22nd

Apple

Mac

Apple assembler Pegatron reportedly ramping up iPhone 6 production, adding iPhone 6 Plus to meet demand

iPhone 6

Although the iPhone 6 and iPhone 6 Plus launched almost two months ago, availability for Apple’s flagship smartphones can still be hit or miss even from Apple’s own stores. Recent waves of international launches certainly haven’t helped supply meet demand, but Nikkei Asian Review reports that electronics manufacturer Pegatron is expanding production capacity to handle strong global demand for the iPhone 6.

Multiple reports from Asian media outlets have claimed Pegatron is responsible for manufacturing a portion of Apple’s 4.7-inch iPhone 6 models, and Nikkei points to a 10% increase in the Apple supplier’s communications product revenue and a net profit surge of $153 million during the quarter including the iPhone 6 launch.

In addition to reporting that Pegatron is readying itself to manufacture an increased amount of iPhone 6 models for Apple, Nikkei adds that Asian media reports have speculated that Pegatron will begin producing Apple’s 5.5-inch iPhone 6 Plus models which is believed to be produced solely by Foxconn.

Apple launched both the iPhone 6 and iPhone 6 Plus on September 19th in the United States, France, Canada, Germany, Hong Kong, Singapore, United Kingdom, Australia, and Japan with 10 million reported sales over its opening weekend.

Apple has since added several additional countries including China and plans to launch in 115 total countries by the end of 2014. Apple’s next wave of iPhone 6 and iPhone 6 Plus rollout will include Brazil, Colombia, Philippines, and more countries.


Filed under: AAPL Company Tagged: Foxconn, iPhone 6, iphone 6 plus, Nikkei, Nikkei Asian Review, Pegatron

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Zac Hall

November 10th

Apple

Mac

Report: China’s Tech Factories Are Abusing Poor Interns

Report: China's Tech Factories Are Abusing Poor Interns

Think that you have it hard, with your internship forcing you to work 8-hour days making coffee for no pay? Well, a WSJ report might make you feel a little better: Chinese factories are relying on cheap intern labour to keep the manufacturing dream alive.

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Chris Mills

September 25th

Uncategorized

Unconfirmed reports that Pegatron is making half the 4.7-inch models of the iPhone 6

iphone6

Digitimes is reporting that Pegatron is making half of the 4.7-inch model of the iPhone 6, at least for orders placed in 2014. Citing upstream suppliers (those making components for delivery to the assembly plants), it’s rumored that Apple has asked Pegatron to make 25M of its initial order of 50M phones, with primary supplier Foxconn making the rest – along with all of the 5.5-inch models.

Taiwan’s Commercial Times had originally suggested that Pegatron would be receiving only 15 percent of orders, while DigiTimes said back in May that it was 30 percent – the same source that now says 50 percent. If you’re thinking all this suggests they are simply plucking numbers out of the air, you may well be right.

Either way, we’re expecting Apple to finally unveil the long-awaited iPhone 6 on 9th September. Recent claimed leaked parts have shown tapered edges on the display panel and the power button moved from the top to the side of the phone; a raised camera cutout; and a single, circular True Tone flash.

We’ve heard sketchy rumors about the battery capacity, and the same rumors about NFC we hear every year.

Everything we’ve seen does, though, point to a significantly slimmer and more rounded design.


Filed under: AAPL Company, iOS Devices Tagged: Apple, Commercial Times, DigiTimes, Foxconn, iPhone, iPhone 6, Pegatron, Taiwan

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Ben Lovejoy

August 14th

Apple

Mac

Apple bans potentially dangerous chemicals from iPhone and iPad assembly process [update: Apple statement]

Photo: Sunday Mirror

Photo: Sunday Mirror

Five months after Chinese and American labor watchdog groups petitioned Apple to investigate the use of potentially hazardous materials in its iPhone and iPad assembly process, the company has announced that it will make changes banning the use of at least two chemicals, the Associated Press reported today. The chemicals in question are benzene and n-hexane, which are tied to lukemia and nerve damage, respectively.

After conducting a four-month study, Apple says it determined that there was no evidence to suggest that these chemicals posed a threat to workers assembling its devices in twenty-two factories, but announced that it would take steps to ensure that it would not become a problem in the future. To that end, both benzene and n-hexane have been banned from the assembly line.

The move is likely too late to have much of an impact on the assembly of some iPhone 6 units, as two versions of that model entered production over the past few weeks. As more iPhone 6 units are produced, the change will help ensure the continued safety of the half a million workers assembling the device.

Update: Lisa Jackson has published a letter on the Apple website explaining the decision to remove these toxins from the assembly process and the company’s continued commitment to eliminating harmful chemicals. Along with the letter, Apple published its Regulated Substances Specification, which outlines the rules it holds its suppliers and manufacturers to regarding use of potentially hazardous substances.

The full letter is below:

Focus on Toxins: Safe products and healthy work environments

Eliminating the risks from toxic substances in the products we all use has always been a passion of mine, and today it is one of our top three environmental priorities here at Apple. We continue to lead the industry in this area as we are committed to keeping both people and the environment healthy. That’s why we’ve removed many harmful substances from our product designs and go to great lengths to make sure they stay that way.

Our pursuit has led to the creation of greener materials and more earth-friendly products, like power cords made without PVC, mercury-free displays, and enclosures that don’t contain brominated flame retardants (BFRs).

We require our suppliers to follow our Regulated Substances Specification and we hold our supply chain responsible with rigorous testing, by our own experts as well as independent labs. And today, for the first time, we are releasing our Regulated Substances Specification to the public.

Recently, we received some questions about whether the chemicals benzene and n-hexane are used in the manufacturing of our products. Apple treats any allegations of unsafe working conditions extremely seriously. We took immediate investigative action, sending specialized teams into each of our 22 final assembly facilities, and found no evidence of workers’ health being put at risk. We’ve updated our tight restrictions on benzene and n-hexane to explicitly prohibit their use in final assembly processes. You can learn more about our commitment to safe handling of chemicals and toxic substances here.

Our history proves that the electronics industry can make use of green chemistry. It’s time now to do even better, and we are eager to take on this challenge.

We’ll invest in research on new materials and technologies. We’ll assemble a new advisory board composed of leaders in safer chemicals and pollution prevention to advance our efforts to minimize or eliminate toxins from our products and supply chain. And we’ll listen — convening roundtables with stakeholders to seek out the best science, data, and solutions.

We’re committed to removing toxins from our products and processes. Because everyone has the right to a safe product and a safe working environment.


Filed under: iOS Devices Tagged: assembly, Foxconn, iPad, iPhone, Pegatron

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Mike Beasley

August 14th

Apple

Mac

Foxconn reportedly hiring 100,000 new workers to assist with iPhone 6 production

Apple iPhone 6 (Mockup) 43

iPhone manufacturing partner Foxconn is in the process of hiring 100,000 new workers in order to ramp up iPhone 6 production, according to a new report from Taiwanese Economic Daily. Another iPhone manufacturer, Pegatron, is also said to be ramping up hiring in anticipation of the new smartphone.

Hiring frenzies like this are not uncommon as new iPhone models prepare to enter production, but in the case of Foxconn the figure represents a new record number of jobs.

According to the report, Foxconn is reportedly responsible for producing 70% of iPhone 6 orders. The report claims that the device will enter mass production in July. Leaked dummies have already given us an idea of what the phone will look like, including the LCD for the rumored 5.5-inch model.

As has been previously reported, two models of the iPhone 6 are expected to go on sale later this year. The smaller 4.7″ display will reportedly be available around September, while the larger 5.5″ version will be delayed.


Filed under: iOS Devices Tagged: Foxconn, iPhone 6, Pegatron

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Mike Beasley

June 23rd

Apple

Mac

Sketchy report claims Pegatron has received 15% of orders for Apple’s 4.7-inch iPhone 6

Screen Shot 2014-05-07 at 2.13.06 AM

At this point, we’ve seen just above every rumored schematic, mockup, and render of Apple’s upcoming iPhone 6. Rumors suggest that Apple will launch its next generation flagship smartphone in 4.7-inch and possibly 5.5-inch variations later this year.

According to the Industrial and Commercial Times (via Macotakara), Apple’s supplier Pegatron has recently received 15 percent of the orders to manufacture the 4.7-inch iPhone 6. The report goes on to note that in total, Pegatron has plans to produce 50 million iPhones throughout the year. This contradicts an equally-sketchy rumor from January, which claimed Pegatron was set to handle half of the production for the iPhone 6.

Back in March, a similar report from the Industrial and Commercial Times claimed that Pegatron was
“gearing up” to begin mass-production of the iPhone 6 starting as early as Q2 2014. Currently Pegatron is responsible for manufacturing Apple’s iPhone 5c and iPad mini. There aren’t any other details regarding the supplier’s production status, but won’t have to wait much longer to find out exactly what Apple has to offer this year.


Filed under: AAPL Company, iOS, iOS Devices Tagged: iPhone 6, Pegatron, report, rumor

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Dom Esposito

May 7th

Apple

Mac

Someone is happy with iPhone 5c sales: Pegatron posts a 22 percent rise in earnings

China Foxconn

Photo: Associated Press

Pegatron, Apple’s main supplier for the iPhone 5c, has reported 22 percent year-on-year earnings growth, citing mobile products as the main source of the increase. KGI Securities analyst Angela Hsiang told the WSJ that Apple provides 40 percent of the company’s business.

Pegatron has long been a secondary iPhone supplier, but was last year given the lead in production of the iPhone 5c, which it manufactures along with the iPad Mini. The company did not provide any breakdown in earnings between the two products.

Although the earnings increase is a big rise, the company’s operating margin is testament to the tough deals Apple strikes with its suppliers: Pegatron’s operating margin increased from 1.6 percent to 1.9 percent.

Pegatron is expected to share production of the iPhone 6 with Apple’s lead supplier Foxconn.


Filed under: AAPL Company Tagged: Apple, Apple supplier, Apple suppliers, Foxconn, iPad, iPad mini, iPhone, iPhone 5C, Pegatron

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Ben Lovejoy

March 24th

Apple

Mac

Pegatron will make half of iPhone 6 supplies, says sketchy rumor

iPhone 6 concept by Nikola Cirkovic

iPhone 6 concept by Nikola Cirkovic

Pegatron, which currently makes the iPhone 5c and iPad mini, is said to be gearing up to make around half of the production run of the iPhone 6 expected to be launched in the fall. It’s a pretty sketchy rumor, based on an anonymous source cited by Taiwanese site Liberty Times, but it is a plausible one at least.

While Apple has so far relied on Foxconn for the bulk of its manufacturing, it’s no secret that supply-chain maestro Tim Cook has been keen to diversify manufacturing in order to reduce risks, a desire reportedly intensified by quality-control issues at Foxconn. As of last August, work for Apple made up 27 percent of Pegatron’s turnover.

The iPhone 6 is, of course, simply the subject of speculation at present … 

Rumors so far suggest that the iPhone 6 will have a larger screen (possibly in two sizes, though I remain skeptical about that personally), something our own poll suggested would be popular. A completely unverified pair of photos claims the new phone will be slimmer.

It’s also been said that Apple will stick with an 8MP camera, focusing its attentions on low-light and dynamic range rather than the pixel count. Plus, of course, we have the traditional annual rumor that Apple will shift its chip production from Samsung to TSMC.

While nothing is actually known, there are plenty of concept images around to keep us entertained.

 


Filed under: AAPL Company, iOS Devices Tagged: AAPL, Apple, Foxconn, iPad mini, iPhone, iPhone 6, Liberty Times, Pegatron, Samsung

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Ben Lovejoy

January 10th

Apple

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