Manufacturing

iPhone manufacturer Foxconn to build own iDevice accessories

Christian Zibreg ∙ May 27, 2013

Taiwan's Hon Hai Precision Industry Co. aka Foxconn, the world's top assembler of consumer electronics, is mulling making and selling its own branded accessories in a move to diversify beyond assembling Apple products.

Foxconn over the years has grown increasingly reliant on Apple contract and with increasing competition and Apple's slowing growth, the manufacturer is starting to feel the pain, too. The Apple biz comprises an estimated 50 percent of Foxconn's revenue, the Wall Street Journal reported Monday.

And earlier this month, The New York Times similarly reported that Foxconn is looking beyond the iPhone and anticipating to mass-manufacture a rumored standalone Apple television set...

Apple said to move from Foxconn to Pegatron

Christian Zibreg ∙ Updated January 26, 2016

Hon Hai Precision Industry aka Foxconn, Apple's contract manufacturer of choice and the world's largest product assembler, is under threat to losing orders to rival Pegatron, which has been building older Apple products Like the iPhone 4S and 4.

According to a new Reuters report, Pegatron "wants to grab more orders to assemble the fast-selling iPhone and iPad." And in order to achieve this self-imposed goal, the Taiwanese manufacturer, which also builds the iPad mini, is reportedly ready to offer "more competitive pricing," even if it has to sacrifice its margins. The news gathering organization reports that Pegatron "appears to be succeeding" in pulling in more orders from Apple...

Pegatron ramping up hiring for budget iPhone production?

Christian Zibreg ∙ May 9, 2013

Just a day after contract manufacturer Pegatron warned investors its second-quarter earnings could drop up to 30 percent due to softening demand for iPad mini, other tablets, e-books and games consoles comes word that the company has ramped up hiring as it needs an additional 40,000 workers on top of its existing 100,000 employees.

The 40,000 additional workers are needed to presumably assemble a rumored less-price iPhone model for Apple, Reuters speculated Thursday, reiterating it heard from suppliers that Apple is indeed "developing a cheaper model of the phone" in order to broaden its sales base to lower-income buyers in growth markets such as China and India...

Pegatron sees softening iPad mini orders

Christian Zibreg ∙ May 8, 2013

In another sign of consumers postponing purchasing iPad minis in anticipation of a second-generation model, said to sport Apple's high-resolution Retina display, contract manufacturer Pegatron has cautioned investors Wednesday to brace themselves for as much as a 30 percent revenue decline when it reports second-quarter earnings, the most since a 37 percent decline in the fourth quarter of 2011.

Although Pegatron assembles Apples' iPhone 4S and iPad mini, the Taiwanese corporation also acts as a contract manufacturer for consumer electronics from other makers. But as Apple is one of its principal clients - and given Apple's high-volume needs - Pegatron attributed the decline to shrinking iPad mini orders...

iPad mini 2 Retina screens reportedly entering mass-production next month

Christian Zibreg ∙ May 7, 2013

NPD DisplaySearch is on a roll. After reporting yesterday that Apple could release two Retina-enabled iPad mini models - one in the second half of this year and another in the first quarter of 2014 with an updated processor, the display market researcher tell CNET today they think those high-resolution Retina panels for the second-generation iPad mini could go into mass-production soon, as early as June or July of this year.

If true, and assuming satisfactory yield rates, Apple should be able to ready its first Retina iPad mini for a Fall introduction, a time frame KGI Securities' well-informed analyst Ming-Chi Kuo recently outlined based on his own sources...

Apple manufacturer Foxconn looks past iPhone, anticipates iTV orders

Christian Zibreg ∙ May 7, 2013

Hon Hai Precision Industry - better known in the Western world as Foxconn - is the world's top manufacturer of consumer electronics. And with Apple products - the iPhone in particular - accounting for at least 40 percent of its revenue, the contract manufacturer's fortunes are tied to Apple's.

Needles to say, the company's leadership never complained about relying on Apple so much as long as sales were growing substantially. But with Apple's growth cooling off amid a broader sales lull affecting pricey high-end smartphones like the iPhone, Foxconn is now looking to lessen its exposure on the Apple smartphone and is apparently gearing up for a mass-scale production of an Apple-branded television set, the rumored iTV...

Reuters: iPhone 5S delayed as coating material interferes with fingerprint sensor

Christian Zibreg ∙ Updated September 23, 2017

Apple's perfectionism is legendary. Good enough just doesn't cut it for a company whose exacting demands often drive its suppliers and manufacturing partners crazy. This even includes construction companies tasked with building Apple's upcoming iSpaceship campus with four times narrower gaps between surfaces versus the U.S. construction standard.

We learned earlier this morning that Apple may have returned up to eight million iPhones to Foxconn, apparently because the unites were not fit for sale, potentially costing the contract manufacturer north of $1 billion to make replacements. In fact, Apple's hard-to-meet standard and various manufacturing challenges could reportedly delay the next wave of iDevice upgrades until Fall.

And today comes another confirmation that Apple won't launch the iPhone 5S this summer because it is still trying out various coating materials in the hope of finding one that won't interfere with the handset's fingerprint sensor...

Apple may have delayed next-gen iPads over fire at LG Display’s subcontractor plant

Christian Zibreg ∙ April 17, 2013

An analyst report last Tuesday disappointed folks who were holding their breath for new iPads before this summer. As iDB told you, KGI Securities' rather accurate analyst Ming-Chi Kuo cited a number of "technical challenges" that Apple is currently facing in manufacturing the second-generation iPad mini and fifth-generation full-size iPad, leading him to believe that both products won't hit the market until Fall.

I've come across an accurate report which might explain that a fire which last week broke out in one of LG Display's subcontractor plants has forced Apple to frantically seek for alternative suppliers who could supply backlight units for iPads and MacBooks. All options are on table, including the display-making unit of Apple's frenemy Samsung...

Apple bashing earns New York Times a Pulitzer

Ed Sutherland ∙ Updated June 13, 2016

Remember how Apple's use of Chinese factories to produce its iPad was the focus of attention during 2012? Well, so did members of the Pulitzer committee, which Monday awarded a 2013 Pulitzer Prize to the New York Times.

The paper won critical awards for its iEconomy series, a nine-part look at the working conditions in Chinese factories producing the popular tablet. But was the series a "penetrating look into business practices by Apple," as the Pulitzer announcement claims, or simply a way to rehash a common practice by using the Apple brand as the foil?

Foxconn hiring assembly-line workers for next-gen iPhone production, WSJ and Bloomberg claim

Christian Zibreg ∙ April 15, 2013

Hon Hai Precision Industry aka Foxconn, which assembles iPhones and iPads for Apple, but also consumer electronics on behalf of other vendors, has started hiring assembly-line workers in the tens of thousands in preparation for Apple's next iPhone, both Bloomberg and the credulous Wall Street Journal reported Monday.

People familiar with the matter tell the publications that the world's largest contract manufacturer has been recruiting workers for the past month at its plant in Zhengzhou, eastern China.

The reports come following February indications pointing to Foxconn imposing a recruitment freeze across almost all of its factories in China after more workers returned from the Chinese New Year break than did last year, a move some attributed to the supposedly weakening iPhone demand...

Tension rises as Samsung complains about not receiving iPhone 6 chip orders

Christian Zibreg ∙ March 30, 2013

Despite the ongoing legal wrangling over mobile technology patents, Samsung to this date remains the only supplier of Apple-designed processors which drive iPhones, iPads and iPods. The South Korean conglomerate has been exclusively building these chips according to Apple's blueprints at its multi-billion dollar fabrication facility in Austin, Texas.

However, recent chatter increasingly points to rival Taiwan Semiconductor Manufacturing Company (TSMC) possibly stealing the Apple contract from Samsung as Apple looks to further distance itself from its chief rival.

A new report from South Korea alleges Apple has now actually excluded Samsung as a future mobile processor supplier. In turn, TSMC, which is the world's largest independent semiconductor foundry, may produce a significant portion, even possibly all of mobile chips for Apple's next-gen iPhone 6 to be released in 2014...

Foxconn posts record profits on Apple’s aggressive product refreshes

Christian Zibreg ∙ Updated January 26, 2016

Hon Hai Precision Industry, better known in the Western world as Foxconn, is Apple's favorite manufacturer that assembles a lot of its products, with Pegatron taking care of the rest. Foxconn also helps a number of other tech giants build and assemble their gadgets.

As Apple is its most visible high-volume client, Foxconn's earnings are often scrutinized for hints of Apple's sales performance. Today, Foxconn reported a record quarterly profit on increased manufacturing efficiency and output of Apple's iPhones and iPads, after having solved production bottlenecks in the prior quarter.

The increased revenue and improved profit margins also could mean that Foxconn may have had some room to push Apple for better pricing, Bloomberg reports...