Apple contract supplier Foxconn has announced better-than-expected quarterly profits, rising 23%. Apple accounts for an estimated half of all Foxconn revenue, thanks largely to the iPhone.
Foxconn’s earnings offer another data point about rebounding iPhone sales. At worst, they should pacify any investors concerned about weak global demand for Apple’s smartphones.
Apple Watch might go through a big change behind the scenes. Until now, this wearable has been assembled mostly by Quanta, but that’s reportedly going to change next year. No less than three companies are going to take on the job.
Apple is reportedly spending $1 billion on growing its production capacity in India. This is part of an ongoing move away from the tariffs that will soon be levied on iPhones assembled in China.
It might also help increase Apple’s sales in India.
Apple says that it is working to fix a problem in which too many temporary workers were found illegally working on the iPhone line at a Foxconn factory.
Over the weekend, New York-based watchdog China Labor Watch published a report about alleged violations. These supposedly took place at the biggest iPhone factory in Zhengzhou, China.
However, while Apple acknowledges the group’s point about temporary workers, it maintains the other findings are inaccurate.
Life is good if you’re Apple’s biggest contract manufacturer! Foxconn, a.k.a. Hon Hai Precision Industry, has reported its highest-ever August sales in the company’s 45-year history.
Foxconn sales hit $12.76 billion for August. That’s up 0.2% from one month earlier. This is the sixth consecutive month in which Foxconn has registered month-on-month increases. While it can’t necessarily all be chalked up to Cupertino, Apple represents more than 40% of Foxconn’s total sales.
Apple may be trying to wean itself off manufacturing in China, but despite its use of factories in Brazil and India, it’s actually relying on China more than ever.
According to Reuters, the majority of Apple suppliers have become increasingly concentrated in China. Although Apple uses small factories outside the country, these are typically used only for small domestic runs.
Frequent Apple contract manufacturer Foxconn recruited kids as young as 16 to work on its production lines, leaked documents show. The company reportedly pushed the teenagers to work nights and overtime as part of the job.
On this occasion, however, Apple isn’t the company under fire. The recruits (classed as “interns”) were working on the Amazon production line. They were building devices like the Echo smart speakers.
Apple is reportedly significantly increasing iPhone production in India. Rather than just making low-end handsets, the latest top-tier models will be manufactured and sold there.
These will be less expensive than imported units and might improve Apple’s sales in this huge potential market.
It’s not just Apple which relies on, well, Apple to make money. There’s a whole ecosystem of other companies orbiting the giant Cupertino sun, too. And they’re all affected by whatever news raises or lowers Apple’s share price.
That’s what took place this week when Wall Street’s latest wobble about Apple sent out shockwaves through the supply chain. As a result, a whole lot of companies which do business with Apple suffered their own sympathy stock declines.
Foxconn, Apple’s oldest and largest supplier, has announced its new boss. Young Liu will step into the role of chairman after billionaire founder Terry Gou announced that he was stepping down.
Gou, who is 68 years old, is planning to run as a candidate in the 2020 presidential election in the Taiwanese elections.
Apple warned U.S. trade representatives this week that President Donald Trump’s plan to impose more tariffs on Chinese goods will negatively impact its contributions to the U.S. economy.
In a letter written to U.S. trade representative Robert Lighthizer, Apple urged the government not to impose tariffs. The new set of tariffs would make Apple’s products more expensive and give Apple’s competitors an advantage.
Apple manufacturing partner Pegatron plans to invest up to $1 billion in a new iPhone chip plant in Indonesia.
The Taiwanese company outlined its plans in a letter of intent to the Indonesian government, according to a new report. Pegatron plans to work alongside local company PT San Nusapersada.
Foxconn is Apple’s biggest supplier, and the world’s largest contract manufacturer. However, that wasn’t enough to stop it from underperforming in its latest quarterly earnings.
The company, whose official title is Hon Hai Precision Industry, reported net profits of T$19.82 billion ($637.26 million) for the first three months of 2019. That might sound good, but it’s down 17.7% from the year-ago quarter.
Foxconn CEO Terry Gou visited President Donald Trump at the White House yesterday. Foxconn, which was founded by Gou, is one of Apple’s biggest manufacturers.
Gou discussed his plans to run for office in Taiwan, where he hopes to become president in next year’s elections. He assured Trump that he would be a friendly partner of the U.S. if elected. “If I am elected, I would be seeking to go to Washington,” he reportedly told the U.S. President.
Departing Foxconn chairman Terry Gou is reportedly heading to the U.S. where he will have a meeting at the White House. The subject of the meeting will be Foxconn’s plans to open a factory in Wisconsin.
Foxconn maintains that it’s working hard to deliver the factory it received $4 billion in tax breaks for. However, behind-the-scenes dealings suggest that the company may be trying to renegotiate terms.
Apple could use next-gen MicroLED displays for a future iPhone, a new report claims.
The report claims that Foxconn, Apple’s biggest supplier, is working hard to win MicroLED orders from Apple — and the iPhone is singled out as the likely recipient.
Foxconn promises that it’s working hard to deliver the Wisconsin factory it received $4 billion in tax breaks for. However, behind-the-scenes dealings show that the company could be trying to renegotiate terms.
A letter from Wisconsin Governor Tony Evers indicates that Foxconn proposed a change to the deal back in March. It is now planning to submit “the necessary documentation” to do so in the coming weeks.
Wisconsin governor Tony Evers, who inherited the deal when he took over office in January, said recently that he wants to renegotiate the parameters of the deal that gives Foxconn $4 billion in tax breaks. Not wanting to miss out on all those incentives, Foxconn is adamant about maintaining its course.
The founder of Foxconn, whose biggest customer, Apple, helped it rise to be the world’s top contract electronics manufacturer, says he plans to step aside to allow a younger executive to take over.
CEO Terry Gou did not give a timeline when he confirmed to a Reuters reporter his plans to resign from the Taiwan-based company he started with a loan from his mom around the same time Steve Jobs launched Apple.
This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.
Foxconn was founded around the same time as Apple, although 6,000 miles away on the other side of the world. In 1974, when 19-year-old Steve Jobs was working at Atari, 24-year-old Terry Gou borrowed $7,500 ($37,000 in today’s money) from his mother to start up a business.
This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.
As iPhone growth exploded, Apple struggled to keep up with demand. Every year, the number of iPhones sold would double, which meant that Apple kept adding new suppliers and assembly operations to keep up. It was a monumental struggle.
This post was going to be part of my new book, Tim Cook: The Genius Who Took Apple to the Next Level, but was cut for length or continuity. Over the next week or so, we will be publishing several more sections that were cut, focusing mostly on geeky details of Apple’s manufacturing operations.
A good measure of the size of Apple’s manufacturing operations is its capital expenditure, the amount of money spends on things like buildings and equipment.
Apple’s capital expenditure, or CapEx, is mindboggling. To get an idea of how big it is, take Apple’s new spaceship campus in Cupertino – which is the fourth most expensive building in the world. It cost the company an estimated $5 billion to construct.
Apple spends a similar amount every six months on manufacturing equipment.
Apple is preparing an entry-level “iPhone XE” that will be introduced this fall, according to a sketchy new report.
The device is claimed to be an iPhone SE successor with huge improvements, including an edge-to-edge display and Face ID. It could also pack Apple’s latest A12 Bionic processor.