Production

GT Advanced’s 2014 revenue to grow 15x thanks to sapphire deal with Apple

As officially confirmed earlier this week, Apple has teamed up with smartphone cover glass maker GT Advanced in a $578 million multi-year deal which gives the iPhone maker steady supply of sapphire glass, a crystalline form of aluminum oxide hailed for its unmatched scratch resistance and hardness second only to diamond.

GT will be investing big money in large capacity furnaces to forge the precious gemstone on an industrial scale at Apple's upcoming eco-friendly, 700-employee facility in Mesa, Arizona. Although the deal is subject to “certain exclusivity terms” and GT expects "substantially lower" gross margins, it's of strategic nature and will be cash positive to GT.

By some estimates, GT's revenue next year could experience an unheard-of 15x increase based on the Apple contract alone...

WSJ: Apple contracts two new manufacturers to build iOS devices

Apple has long relied on Foxconn, the world's top manufacturer, to assemble its gadgets. In small part, Apple also taps Foxconn's rival, Taiwan-based Pegatron, on a regular basis for some orders. According to a new Wall Street Journal report Wednesday, Tim Cook & Co. have now contracted an additional two companies to help assemble iPhones and iPads amid growing demand for the products.

Mind you, it's not like Apple suddenly stopped loving Foxconn - the company will continue to build the iPhone 5s - but the report makes a passing mention of Apple apparently being dissatisfied with the high repair costs over defective iPhone 5 units and ongoing labor controversies surrounding Foxconn...

How Apple supplier GT Advanced makes sapphire glass covers for smartphones

Yesterday, New Hampshire-based materials manufacturing company GT Advanced announced a multi-year agreement with Apple to provide steady supply of the sapphire glass, a crystalline form of aluminum oxide known for its superior durability and scratch resistance. Apple relies on this pricey gemstone to protect the iPhone 5s's Touch ID sensor and has been using it for camera lens cover on all iOS devices since the iPhone 5.

The strategic supply agreement is valued at more than half a billion dollars in cutting-edge equipment and some folks have combed through Apple's patent filings for a clue to building next-generation iDevices with sapphire glass covers instead of Gorilla Glass.

Here's a video tour of GT's manufacturing process behind making the scratch-resistant, tougher-than-Gorilla-Glass sapphire displays for smartphones...

Apple opening next-gen sapphire glass plant in Arizona, creating 2,000 US jobs

The Arizona State Governor Janice K. Brewer has just issued an interesting press release confirming that Apple will open a manufacturing plant in Mesa to build components for products. The manufacturing facility will create more than 700 high-quality jobs in the first year and "generate significant capital investment".

She kept mum on details, but the "significant capital investment" rules out server farms and perhaps alludes at some sort of a new plant to assemble products other than the new Mac Pro, which is being assembled in a Texas plant. UPDATED with new info, jumps past the fold for the latest..

Remarkable sophistication of Mac Pro manufacture

Not that long ago, these three words - 'Made in USA' - stood out for American quality, craftsmanship and reliability. What a difference a few decades make! As everyone's been building virtually everything in China, small wonder even Apple's boss Tim Cook, like his predecessor Steve Jobs, suspects those manufacturing jobs won't be coming back anytime soon. What might is (some) assembly work.

It was only recently that the nation's tech brands began experimenting with doing final assembly domestically. Motorola, for example, is putting the final pieces of the Moto X in place at a Texas plant, previously a Nokia facility.

Apple, in the meantime, has always designed its products in California and tapped its vast network of suppliers and contract manufacturers in Taiwan and China to build its gizmos. That's starting to change now as Apple's next-generation Mac Pro marks the company's return to the US in a limited manufacturing capacity.

The upcoming dream desktop is being assembled in a $100 million U.S. plant. And like Motorola's, Apple's facility is located in Texas. So, how does Apple build such a sophisticated and radically rethought desktop computer? Industrial designer Greg Koenig took a closer look at an eye-candy Mac Pro assembly video Apple played at yesterday's keynote, here's what he gleaned from it...

Foxconn: yes, interns worked overtime and even nights

Foxconn, the Tiawanese electronics assembler closely linked to Apple and other electronics firms, admits student interns who helped build Sony Playstation 4 consoles worked both overtime and at night in its China factories. Foxconn is the world's leading contract manufacturer whose fortunes are closely tied to Apple's.

In a statement last week, Foxconn said there were "a few instances" where interns worked shifts which violated company policies. However, the company which also assembles iPhones and iPads for Apple, said "immediate actions" will be put in place to prevent further incidents...

WSJ: Apple cutting iPhone 5c production, increasing 5s orders

Apple has asked its iPhone suppliers in China to cut down on production of its iPhone 5c model, according to a new report by The Wall Street Journal. This is the second time we've heard this in as many weeks.

Last week, it was reported by Chinese web site C Technology that Apple had cut their iPhone 5c orders in half—from 300K units per day, to 150K—spawning speculation that the device isn't selling very well...

Apple reportedly cutting iPhone 5c production in half

When Apple announced that the pricing for the plastic iPhone 5c would only come in $100 less than its flagship 5s, the entire tech world let out a harmonious gasp. The handset, which we had all known about for months prior, was supposed to retail in the $300 range.

A lot of folks predicted that the higher pricing would lead to the device's downfall. And it may have. Apple didn't announce any sales numbers after the 5c's opening weekend, and today, a new report is out claiming that the company is cutting production in half...

Retina iPad mini could face severe supply constraints

Despite the fact that we've seen conflicting reports on the topic, the consensus seems to be that Apple is working on an iPad mini with a high resolution display. And it's expected to introduce the tablet at a media event this month.

According to a new scoop from Reuters, however, even if such a product is unveiled in the near future, it may be a while before you can get your hands on one. The outlet says initial supplies for the slate will be severely constrained...

Over 200 workers involved in brawl at Foxconn plant

Foxconn has confirmed that a large fight broke out last week at one of its Chinese campuses, according to a new report from The Wall Street Journal. The brawl attracted between 300 and 400 workers, and injured at least 11.

The outlet says that the fight between two different groups initially broke out last Thursday after workers gathered to celebrate China's Mid-Autumn Festival holiday, and saw workers wielding steel bars, batons and machetes...