Tim Cook might have claimed that iPhone 5c demand “turned out to be different than we thought” on Apple’s recent quarterly earnings conference call, but there’s one company that doesn’t seem too upset about the 5c’s performance: Apple supplier Pegatron.
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Apple is set to start producing all its iPhone batteries on automated production lines starting later this year, according to a report from DigiTimes.
The decision is reportedly related to minimum wages rising in China — combined with labor shortages and high turnovers of staff, who have to be trained to use the manufacturing machinery.
Production of the iPhone 6 is set to begin next quarter.
According to a report in the Commercial Times, Taiwan’s Pegatron Corp — which assembles the iPhone and iPad — is opening up new factory space and recruiting new workers in China to meet the orders it has received from Apple for the iPhone 6.
It is not known how many units would be manufactured by Pegatron, although it is suggested that fellow Taiwanese contract assembler Foxconn will be the iPhone 6’s other primary manufacturer.
iPhone manufacturer Foxconn has signed a letter of intent promising to invest up to $US1 billion in Indonesia.
The $1 billion investment would be carried out in between three and five years, and will cover areas including R&D, electronics software design, manufacturing and assembly of electronic products.
The company is currently assembling the iPhone 5c and iPad mini, but if this news is to believed (it does cite an unidentified source) Apple’s reliance on Pegatron will grow in 2014 — with a new plant planned in Shanghai satellite city Kunshan in anticipation of an iPhone 6 manufacturing deal.
In the wake of the news concerning the 15-year-old employee who died after working on the iPhone 5c production line, Apple supplier Pegatron has revealed the high tech measures it goes to in order to avoid hiring underage workers.
According to Pegatron, the Taiwanese manufacturing firm has been employing facial recognition technology since earlier this year to screen for such an occurrence.
Yesterday we reported on the tragic death of a 15-year-old worker at a Shanghai factory belonging to Pegatron — the Taiwanese manufacturing firm who produce the iPhone 5c and iPad mini.
At the time the story was written, Apple hadn’t responded to the reports — or to requests from the New York-based China Labor Watch asking the company to take a closer look at working conditions at its supplier.
Since then, Apple has given its answer: noting that it sent independent medical experts to conduct an investigation at the factory last month.
“While they found no evidence of any link to working conditions there, we realize that is of little comfort to the families who have lost their loved ones,” Apple said in a statement.
One of Apple’s product manufacturers is in the news again for possible workers’ rights violations — and this time it’s not Foxconn.
Instead, the company being investigated is Taiwanese manufacturing firm Pegatron, which earlier this year undercut Foxconn to “steal” a number of Apple assembly orders.
Apple is being called on to investigate the deaths of several workers at the Shanghai factory — one of whom was a 15-year-old who died of pneumonia after working on the iPhone 5c production line for just one month.
Apple has told iPhone suppliers in China to cut iPhone 5c orders for the fourth quarter following lower than expected demand for the device, The Wall Street Journal reports. Foxconn has been asked to cut orders by one-third, while Pegatron will reduce its shipments by 20%, sources claim.
Pegatron may be gearing up to take on future iMac orders from Apple after “some related upstream supply chain players” revealed that they have sent iMac components to Pegatron for assembly. Quanta is currently tasked with assembling Apple’s popular all-in-one, and it’s unclear whether the two will now work side-by-side or whether Pegatron will take over.