Apple’s cost-cutting strategy draws ire of Chinese supply chain

By

Tim Cook meeting an iPhone manufacturer in China.
Tim Cook meeting an iPhone manufacturer in China.
Photo: Apple

With iPhone demand slowing down, one of the ways in which Apple is hoping to increase earnings is by pushing its suppliers to work for less money — but it doesn’t seem to be going entirely to plan.

According to a new report, Apple is meeting resistance from manufacturers in its Taiwan-based supply chain as it requests that they lower quotes for iPhone 7 components by as much as 20 percent.

Apple pushes suppliers to take a price cut to secure orders

By

Tim Cook meeting an iPhone manufacturer in China.
He's a shrewd operator is Tim Cook!
Photo: Apple

Unsurprisingly for a company with the kind of success Apple has experienced, it is quite adept at driving a hard bargain.

According to a new report, Apple has been trying to maintain its high gross margin at a time of slowing smartphone demand by asking its suppliers to work for less money. Major suppliers Largan Precision, Foxconn and Pegatron Technology have all been affected.

iPhone 7 Plus may not get dual-lens camera after all

By

iPhone 7 mockup
The iPhone 7's dual-lens camera could be a game changer.
Photo: Martin Hajek

Buying the iPhone 7 Plus might not be as big an upgrade as some Apple fans were hoping for this fall.

Apple has allegedly decided to scrap plans to include a dual-lens camera sensor on the back of the iPhone 7 Plus, according to the latest rumor from China that claims the tech isn’t quite ready.

iPhone maker replaces half its factory workers with robots

By

Tim Cook greeting Foxconn workers in China. Photo: Apple
Tim Cook meeting with (human) Foxconn workers.
Photo: Apple

Apple manufacturer Foxconn has been talking about investing in robots for years now, but apparently it’s finally done it — replacing more than half of the employees at one of its factories with machines.

“The Foxconn factory has reduced its employee strength from 110,000 to 50,000, thanks to the introduction of robots,” said a government official, adding that “it has tasted success in reduction of labour costs” and that more companies are now likely to follow suit.

Apple adds second supplier for iPhone 7 Plus

By

iPhone 6 Plus_7
Apple is expanding its number of iPhone suppliers.
Photo: Ste Smith/Cult of Mac

Apple has reportedly added Wistron as a supplier for its upcoming next-gen iPhone 7 Plus: the 5.5-inch handset we’re expecting to arrive this September.

Although the companies in question haven’t officially confirmed it, Wistron and Foxconn are said to be sharing orders for the plus-sized phone, while Pegatron and Foxconn will split orders for the smaller-size 4.7-inch iPhone 7.

Weak iPhone demand punishes Apple suppliers

By

The iPhone's camera is getting a big update.
Apple isn't the only one suffering due to weak iPhone sales.
Photo: Ste Smith/Cult of Mac

Weak demand for the iPhone is causing earnings to fall for a number of suppliers in Asia, and few of them are hopeful that the situation is going to change.

Foxconn, the biggest assembly partner for the iPhone, saw its profit fall 9.2 percent last quarter, while Pegatron’s nosedived a whopping 35.1 percent.

A rare and horrifying look at living conditions in an iPhone factory

By

Screen Shot 2016-05-11 at 20.26.00
A Pegatron toilet that had to accommodate up to 40 workers.
Photo: The Daily Mail

A rare look inside the abandoned facilities where Chinese workers toiled away making iPhones reveals a grim environment that’s a long way from Silicon Valley’s plush lifestyle.

Depressing images reveal the tiny rooms where up to 12 Pegatron workers slept each night, the dirty dining areas where they ate, and the disgusting bathrooms where they washed.