Production

Rare earth elements, another reason why Apple has its heels stuck in Chinese mud

Christian Zibreg ∙ Updated January 25, 2016

We explained earlier today how producing millions of iPads that'll eventually be discarded negatively affects our environment.

And even though Apple is doing what it possibly can to forgo toxic materials in iPad manufacturing, green technology requires a significant amount of difficult-to-mine elements.

And these green earth elements are yet another reason why Apple cannot pull out of China and move manufacturing to other countries.

True, some iPhones are being made in Brazil. The problem for Apple and other electronics makers is the fact that companies can only be exempt from China’s rare earth export quotas by manufacturing within the country...

Want to see how an iPad is made? Watch this video

Cody Lee ∙ Updated January 25, 2016

Earlier this month, Marketplace's Shanghai Bureau Chief Rob Schmitz found his way into Foxconn's Longhua facility, where many of Apple's iPads are made. He's only the second reporter ever to be allowed on to the company's factory floor.

Schmitz uploaded a video of his visit to the plant today, which included a tour of an iPad assembly line and an inside look into the lives of Foxconn's employees. Want to see how an iPad is made? Make sure to watch the clip after the break...

Despite criticism, Apple is beating competitors in supply chain efforts

Cody Lee ∙ April 9, 2012

The New York Times published an interesting article yesterday regarding Apple's efforts to improve working conditions in its supply chain. But unlike the report it ran earlier this year, which largely criticized the company, this piece praised Cook's team.

After doing a little research, The Times found that Apple is far more transparent with its overseas factory audits and is doing more to correct violations than any of its competitors. In fact, a majority of the companies won't even comment on the matter...

Foxconn workers to get wage increases in July

Christian Zibreg ∙ April 6, 2012

Foxconn is the world's largest (and Apple's favorite) contract manufacturer. Despite criticism that it runs sweatshops, the truth is that Foxconn leads the charge in improving working conditions at its high-tech factories, at least compared to other large-scale production operations in China.

A new report citing company founder and CEO Terry Gou confirms that Foxconn has put forth a plan to increase salaries of its workers come this June. Conveniently, the news coincides with Apple CEO Tim Cook's recent trip to China, as well as the rumored production of a sixth-generation iPhone...

Does Apple have an obligation to create more American jobs?

Cody Lee ∙ April 5, 2012

At this point, it's fairly common knowledge that Apple outsources its manufacturing work overseas. Labor is much cheaper in countries like China, where there are no minimum wage laws, so it's a huge draw for companies looking to lower their costs.

But not everyone's ok with this. CNN's Clyde Prestowitz recently wrote an article entitled "Apple has an obligation to help solve America's problems." The piece is essentially about the company's lack of job creation in the US, and what it should do about it...

Apple rumored to make a massive $9.76 billion investment in Foxconn

Christian Zibreg ∙ April 4, 2012

Just as we've digested the news about Apple's favorite manufacturer Foxconn buying an eleven percent stake in Japanese giant Sharp (apparently in order to better compete for display orders from Apple), a new report surfaced claiming the iPhone maker itself is considering investing a whopping $9.76 billion in Foxconn.

The sum would be enough for a 20 percent stake in the Asian manufacturing powerhouse. Is this why Tim Cook toured China a week ago? Surely an investment this big would let Apple have a greater say on working conditions in Foxconn plants.

The two partners would also get to collaborate more tightly on new projects that require in-depth knowledge of the intricacies behind large-scale operations run by Foxconn, Apple's strategic manufacturing ally.

Unhappy with reduced hours, Foxconn workers argue salary doesn’t cover basic needs

Christian Zibreg ∙ March 30, 2012

Following yesterday's findings of the Fair Labor Association’s investigation into Apple’s supply chain, a report out this morning claims Foxconn workers are now concerned about their work hours being cut because they think the move will lead to lower wages.

Per FLA’s recommendations, Foxconn and Apple have reduced excessive work times to 49 hours a week, including overtime. The two partners have also tweaked salaries, a move they claim ensures workers don't earn less amid reduced working hours.

But despite these long-overdue policy changes being put in place, Foxconn workers are not entirely convinced...

The FLA publishes initial report on Foxconn factories: they aren’t sweatshops

Cody Lee ∙ March 29, 2012

Today, the Fair Labor Association published its highly anticipated report on the working conditions inside Foxconn's factories. Apple joined the FLA earlier this year amidst an onslaught of criticism that it was neglecting its supplier responsibilities.

We've heard horror stories about what goes on inside the facilities where our iPhones and iPads are made — most of which depicted a sweatshop-like atmosphere with underaged workers. But the FLA's report paints a different picture...

Here’s what Foxconn’s strategic deal with Sharp could mean for Apple, iPad and iTV

Christian Zibreg ∙ March 28, 2012

Yesterday's news that Apple's contract manufacturer Foxconn bought an eleven percent stake in the Japanese multinational corporation Sharp sent the tongues wagging. With a 46.5 percent stake in Sharp’s LCD plant in Sakai, Osaka, conventional wisdom has it that Foxonn, which just released its 2011 financial report, will bolster Sharp's LCD business and make it more profitable by securing the lowest prices on components.

Other folks think the two partners joined forces to battle LG Display and Samsung for orders of Retina displays for the new iPad. After all, Sharp is already been credited with small-volume shipments of 2,048-by-1,536 pixel resolution panels for the device and they're about to ramp up production in the second quarter.

Another intriguing possibility includes next-generation flat panels for a rumored Apple-branded television set, nicknamed the iTV...

Apple’s favorite contract manufacturer Foxconnn secures 11% stake in Retina display maker Sharp

Christian Zibreg ∙ March 27, 2012

Japanese electronics maker Sharp said today it will form a strategic global manufacturing partnership with Foxconn parent Hon Hai Precision Industry Co that will see the latter take eleven percent ownership in the former. In a nutshell, an assembly company has just purchased a stake in a manufacturer.

Things get really interesting knowing that Hon Hai's Foxconn is Apple's long-standing manufacturing partner producing iPhones, iPads and Mac notebooks, but also PlayStation 3s, Xbox 360s and a host of other consumer electronics products for Western companies.

On the other hand, Sharp is currently on Apple's list of supply chain partners and has allegedly produced 2.71 million Retina display panels for the new iPad, with plans to ramp up production in the second quarter. This strategic partnership should also help Foxconn and Sharp together battle LG and Samsung for Apple orders.

Foxconn reportedly facing strikes as it prepares for next iPhone production

Cody Lee ∙ Updated January 25, 2016

The China Morning News is reporting that Foxconn, Apple's goto manufacturing partner, is currently in the middle of a significant hiring binge. The company hopes to increase numbers by 20,000 at its Taiyuan plant in Northern China.

According to the report, the push is in preparation for the production of the next-generation iPhone. The handset isn't expected to hit the market until later this year, but Foxconn is said to have already received orders from Apple...

New Apple Supplier Responsibility report shows improvement

Cody Lee ∙ March 21, 2012

In wake of numerous reports on the poor working conditions at some of the factories in its supply chain, Apple erected a new section of its website entitled "Supplier Responsibility."

The page includes a number of resources, including monthly reports showing the company's progress. And according to the latest update, working conditions are already improving...