manufacturing

Bad news for Xmas: Apple’s largest factory forced into ‘total lockdown’

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Foxconn building
Foxconn is Apple's biggest contract manufacturer.
Photo: Puddingworld, CC BY-SA 4.0/Wikimedia Commons

Days after reports of Foxconn employees hopping fences and fleeing from their jobs, a report late Wednesday from Taiwan News says Apple’s biggest iPhone factory is now on “total lockdown.” These new restrictions may have a big impact on Apple’s sales during the crucial holiday period.

Foxconn, whom Apple contracts to manufacture the lion’s share of iPhones, Macs and other Apple products, has had employees stay in on-site dormitories in a “closed-loop system” to prevent COVID outbreaks. Employees have been complaining about the “increasingly unsafe and inhumane working conditions” of the dorms.

Remote-working Apple engineers use AR to guide technicians in China

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Apple augmented reality has business potential
Apple
Photo: Apple

Apple engineers used remote control robots and iPads equipped with custom augmented reality software to guide technicians in overseas factories, due to the coronavirus lockdown.

Usually Apple engineers make frequent visits to places like China, where Apple carries out manufacturing. However, this year’s coronavirus lockdown has made this impossible — leading to Apple having to make some tech-savvy adjustments.

Apple suppliers in China eye February 10 restart after coronavirus shutdown

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Terry Gou
But there's a definite chance of further delays.
Photo: Foxconn

Apple’s manufacturing partners in China hope to jump back into action next week, after the coronavirus epidemic forced temporary shutdowns in the country, according to a new report.

Foxconn, LG Display and others “plan to resume full-scale production” on February 10. But with the viral outbreak only worsening as the weeks go on, there’s a definite chance of further delays.

India may offer subsidized loans to win Apple manufacturing bids

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Foxconn moving additional iPhone production to India as coronavirus disrupts work
India has big plans for being a smartphone manufacturing hub in the coming years.
Photo: Ste Smith/Cult of Mac

India wants to woo Apple suppliers into opening factories in the country. To that end, it may offer attractive subsidized loans to make it more appealing.

The proposals by the Ministry of Electronics and Information Technology may be part of a new federal budget for February. Alongside the subsidized loans for opening factories, it would also cover “industrial zones equipped with taxation and customs clearance.”

Apple is relying on factories in China more than ever

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Hong Kong police arrest smugglers with $1 million of iPhones and other devices
China continues to be the epicenter of Apple's manufacturing.
Photo: Ed Hardy/Cult of Mac

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.

Apple could make AirPods outside China for first time

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Bounce ad for AirPods1
Apple is looking at new places to build its devices.
Photo: Apple

Apple is gearing up to carry out a trial production of AirPods in Vietnam. This is as part of Apple’s aim to expand manufacturing outside of China.

Earlier this summer, Apple asked its suppliers to explore manufacturing in other markets. This was at a time when concerns about possible China tariffs were at their height.

More Apple suppliers looking to manufacture outside China

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Apple display maker exec fired for embezzling millions of dollars
This could be one way around tariffs.
Photo: Kristal Chan/Cult of Mac

Two more manufacturers which regularly do work with Apple are eying up new potential plant locations outside of China. Wistron is reportedly looking to open a factory in the U.S. or, as a backup, Mexico. Chassis maker Catcher is, meanwhile, looking at Southeast Asia or Taiwan as locations.

This comes at a time when fears about a burgeoning trade war between China and the U.S. is making people worried about possible future trade.

Apple cuts production of older iPhones with new models ‘on track’

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iPhone xs xr compared
Sales of the iPhone XR are said to be falling fastest.
Photo: Apple

Apple has cut production of older iPhone models for the third quarter of 2019, according to a new report from analysts.

The move suggests that demand for the company’s more affordable devices has started falling. Meanwhile, manufacturing is on track for Apple’s next-generation handsets coming this fall.

Apple doubles the number of suppliers committed to green energy

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Apple supplier 2
Apple has worked hard to cement its environmental cred.
Photo: Apple

Apple shows an impressive commitment to sustainability, particularly when it comes to clean energy.

Today, it revealed that it has almost doubled the number of suppliers committed to running their Apple production on 100% clean energy. This brings the total number to 44. It means that Apple will exceed — by 1 gigawatt — its goal of bringing 4 gigawatts of renewable energy into its supply chain by 2020.

After Trump call, Foxconn recommits to Wisconsin factory

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Foxconn Wisconsin
Foxconn workers in Shenzhen will not report next week until further notice.
Photo: Foxconn

How a Foxconn factory in Wisconsin takes shape depends on what day of the week it is.

Today, company CEO Terry Gou is committing to a “Gen 6 fab facility” in the dairy state after having a “personal conversation with President Donald Trump.

How many jobs will come with a Gen 6 fab facility or what exactly it will build is not known. A Gen 6 factory typically builds screens for smartphones, tablets and small televisions.

Foxconn says it can’t afford to make TV screens in Wisconsin

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Foxconn signing
Foxconn and University Wisconsin officials signing a deal for a research center.
Photo: Bryce Richter/University of Wisconsin-Madison

Foxconn, which promised to create 13,000 jobs with a $10 billion factory in Wisconsin, won’t be producing state-of-the-art TV screens here as planned.

The news may not come as a big surprise to critics of the deal, which gave the iPhone maker the richest subsidy package in the state’s history. Foxconn has already forfeited some of those tax credits after it missed 2018 hiring goals.

Lack of screws put the hurt on Apple’s U.S. manufacturing plans

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Screws 1
This anecdote illustrates why U.S. manufacturing is so tough for Apple.
Photo: Gemma Stiles/Flickr CC

President Trump has suggested that Apple manufacture its devices in the United States. But things aren’t quite so easy as that — as a New York Times article makes clear.

It describes the challenges Apple faced when it tried making its top-of-the-line Mac Pro in the U.S. several years ago. One of the big problems? Simply, that Apple couldn’t get hold of enough screws to assemble the $3,000 computers in Austin, Texas.

Apple wants tax incentives to boost iPhone assembly in India

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iPhone assembled in India
Coming soon with a 2?
Photo: Indian Express

Apple is hoping to secure new tax incentives in India that will allow it to increase local iPhone production and export more devices to be sold in other countries.

The company has teamed up with other large names in the Indian Cellular and Electronics Association (ICEA) to propose a raise in export credits on smartphone shipments, as well as tariff cuts on imports of components and machinery.

The group argues that manufacturing growth cannot be sustained and accelerated without the changes.

iPhone suppliers could leave China if trade tariff hits 25%

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iphone XS
Apple will look to avoid iPhone import levies above 10%.
Photo: Apple

iPhone suppliers will reportedly consider moving away from China is U.S. trade tariffs hit 25 percent.

Sources say they will remain even if the U.S. introduces a 10 percent tax on smartphones, but they could be forced to “reassess the situation” should the Trump administration impose a higher rate on imported goods.

iPhone production could head to Vietnam to avoid U.S. trade tariffs

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iPhone XS box gold
Bag yours before they're all gone.
Photo: Ste Smith/Cult of Mac

iPhone assembly partner Foxconn is considering the possibility of opening a new facility in Vietnam in an effort to avoid U.S. trade tariffs.

The factory would focus specifically on iPhone production, according to a new report. Vietnam Chamber of Commerce and Industry Vu Tien Loc says talks with Foxconn are underway.

Foxconn denies US plant will be staffed with Chinese engineers

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Foxconn Wisconsin
Foxconn is moving to the U.S.
Photo: Foxconn

Apple’s top manufacturing partner Foxconn is denying a recent report from the Wall Street Journal that the company is looking to staff its new Wisconsin plant with employees from China.

Foxconn allegedly plans to bring engineers to fill a gap in prospective talent due to a tight labor market, the Journal claims. The plant has already been scaled back in size. Adding Chinese laborers instead of creating American jobs would certainly cause even more controversy.

Apple just leased another massive facility in Silicon Valley

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McCarthy Creekside 2
A render depicting one part of the new McCarthy Creekside facility.
Photo: McCarthy Creekside

Apple has snapped up a 10-year lease for a large, 314,000-square-foot warehouse in Milpitas, California, approximately a fifteen minute drive from Cupertino.

The space is located at McCarthy Creekside, a new multiphase development located in the city of Milpitas. Apple is reportedly paying in the vicinity of 90 cents per square foot. According to developer Joey McCarthy, McCarthy Creekside is intended for “industrial, R&D, [and] manufacturing.”

Apple switching suppliers to cut production costs

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Apple
You don't get to $1 trillion without knowing a thing or two about saving cash.
Photo: Apple

Apple may have just passed the $1 trillion mark, but it’s still looking for ways to save money. In its efforts to keep manufacturing costs as low as possible, the company is supposedly shifting production for its various devices from Taiwanese suppliers to Chinese ones.

iPhone maker slams China’s overtime caps

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Terry Gou
But there's a definite chance of further delays.
Photo: Foxconn

Foxconn could assemble even more iPhones if China eased restrictions curbing factories from abusing overtime, the company’s CEO says.

Billionaire Terry Gou says China’s rules on overtime keep workers from earning more and puts limits on Foxconn’s competitive edge.

Apple has a new plan for cutting down manufacturing costs

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MacBook butterfly keyboard
Apple is now handling ordering for even tiny components like MacBook screws.
Photo: Apple

Apple is known for exerting a lot of control over the manufacturing of its products, and it’s reportedly set to ramp up this control even further.

Beginning with its new MacBook models, Apple will reportedly carry out direct pricing negotiations for the screws and assorted non-key metallic and plastic parts used on its devices, which are currently purchased directly by its contracted supply partners.

iPhone manufacturer accused of using unauthorized parts

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iPhone 8
Incident allegedly occurred at a factory manufacturing iPhone 8 Plus models.
Photo: Ste Smith/Cult of Mac

Apple has reportedly suspended production at one of its iPhone manufacturing plants in China as the result of the use of unauthorized components.

The story concerns a Wistron plant in Kunshan, China, where the iPhone 8 Plus is manufactured. Production has allegedly been suspended for two weeks, although Wistron insists that this is not true and that, “operations remain completely normal.”

Does iPhone X show that Apple’s ‘lost its supply chain mojo’?

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iphone X3
Apple's supply chain may no longer be quite so brilliant.
Photo: Apple

Apple has “lost its supply chain mojo,” claims a new report, suggesting that this year’s iPhone refresh has highlighted that Apple’s once-enviable supply chain brilliance is no longer quite so, well, brilliant.

While there have been component issues Apple has dealt with in the past, this year’s iPhone X manufacturing process has been particularly prone to problems, with the upshot being that supply of the in-demand device is unlikely to match with demand until well into 2018.