Everyone knows iPhone is made in China, right? Well, yes and no. A new report indicates that as many as 14% of Apple handsets are actually produced in India.
It’s part of Apple’s plan to diversify where its products are assembled to reduce its dependence on China.
December 11, 2013: A Chinese labor rights group calls on Apple to investigate the deaths of several workers at a Shanghai factory run by iPhone manufacturer Pegatron.
Most controversially, one of the dead workers is just 15 years old. The underage worker reportedly succumbed to pneumonia after working extremely long hours on the iPhone 5c production line.
Analysts note that new COVID-19 lockdowns in China are hitting Apple’s supply chain hard. And the pain will likely worsen, with production falling behind by up to 10 million iPhones.
And this is not just about iPhones. Authorities have halted production at three key suppliers for iPhone, iPad and Mac assembly. Meanwhile, Apple is negotiating to reopen production lines, though success could be hard to come by, according to one analyst Friday.
This follows recent news of assembly and shipping delays on built-to-order MacBook Pro models.
Order a MacBook Pro with an M1 Max processor and you’ll wait until June for a delivery. Wait times have grown to 7+ weeks because the company that assembles the notebook for Apple is caught in a COVID lockdown.
The same lockdown caught one of the major iPhone assemblers, and also two iPad assemblers. But it’s not affecting handset or tablet deliveries. Not to the same extent, anyway.
It’s iPhone production season, and that means that Apple manufacturers need to recruit enough workers to build them. While this seasonal demand happens every year, in 2021 it’s heightened by the worldwide labor shortage coming out of the pandemic.
As a result, Apple’s manufacturers are working hard to offer bonuses to tempt people to spend a few months on the production line. According to a report from Taiwan’s Economic Daily paper, manufacturer Pegatron is offering extra paychecks for both workers and those who recommend their friends for jobs.
“Made in India” iPads are one step closer, as the country’s government has approved an incentive plan that could benefit the likes of Apple, Reuters reports.
Apple can reportedly drag its feet when removing repeat labor violation offenders from its supply chain, a new report from The Information claims.
Cupertino supposedly postpones taking action when it has no other companies lined up to pick up the slack, or in other scenarios that would cause financial damage due to delays or higher costs.
Apple has placed Pegatron, one of its largest manufacturing partners, on probation after discovering the company violated Apple’s supplier code of contact. This relates to the unauthorized use of students carrying out overtime and night shifts.
Pegatron employees reportedly went “to extraordinary lengths” to cover up the wrongdoing. Apple has said that the manufacturing giant won’t get any new work from Apple until corrective action is made. However, it will continue building current iPhone handsets as per previous orders from Apple.
Apple’s partnership with Foxconn, its largest manufacturing partner, is “eroding” as a result of the supposedly shady tactics that Foxconn is using in an effort to boost profits, according to a new report.
It is claimed that Foxconn has exaggerated hiring counts, used Apple equipment to produce orders for other companies, and cut corners on component and product testing.
Yet another major Apple contract manufacturer is embracing India as a possible location for building iPhones. According to Bloomberg, Pegatron is the third major iPhone maker — after Foxconn and Wistron — to explore setting up a plant in India.
Apple is moving some more of its iPhone production to India, as China continues to grapple with the spread of coronavirus.
Renowned Apple analyst Ming-Chi Kuo has some details as to how coronavirus is impacting on Apple factories in China.
Apple supplier Pegatron is looking to Vietnam as a location to possibly carry out some of its manufacturing work.
The move would help Pegatron, one of Apple’s biggest suppliers, diversify beyond its current home in China.
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 has reportedly asked its main suppliers to evaluate the cost of shifting 15% to 30% of their production from China to Southeast Asia.
This is a response to the burgeoning China and U.S. trade war, which has already impacted Apple’s share price. If new tariffs go into effect, it could drive up the cost of Apple devices considerably.
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.
Apple manufacturer Pegatron is reportedly set to start assembling MacBooks and iPads in Indonesia, starting next month.
The news comes at a time when more and more people are concerned about a burgeoning trade war between the U.S. and China. Because a large number of Apple’s products are manufactured in China, the possibility of new import tariffs could have a detrimental impact on the company.
Plans for an iPhone SE 2 may have gone the way of the dodo, but Apple may not have abandoned its iPhone SE philosophy of squeezing new components into an old iPhone form factor.
According to a new report, Apple plans to release a new version of the iPhone 8 with new, up-to-date internals. While users probably won’t get Face ID, they may get an A13 processor, redesigned printing circuit board, and more.
More and more Apple suppliers are considering building devices in India, and a new concession might make that possibility even more plausible.
According to a new report, India has deferred a plan which would have introduced tax on touch panel imports. These tariffs were supposed to be introduced in February, but have supposedly been delayed until at least April 2020. This follows lobbying from smartphone makers.
According to the Financial Times, Apple manufacturer Pegatron is planning to build new production lines in India, Vietnam and India. Pegatron accounts for around 30 percent of Apple’s assembly orders.
It follows on from news suggesting that fellow Apple supplier Foxconn is also considering production in India and Vietnam.
Foxconn, Apple’s largest manufacturing partner, has cut 50,000 workers ahead of schedule as a result of weak iPhone demand.
The first cuts came last October, months before Foxconn typically scales back its workforce in preparation for slow season, according to a source familiar with the move. It is believed that Foxconn isn’t the only Apple supplier making cuts, either.
Apple is shifting orders for the iPhone XR between its suppliers to make sure that there are as few supply constraints as possible when the device finally launches in October.
Apple manufacturer Pegatron has reportedly received orders from Apple to manufacture an ARM-based MacBook model, codenamed “Star” or “N84.” ARM processors are currently used for Apple’s iPads and iPhone, but not its Macs.
Excitement over the iPhone 8, and Apple’s better-than-expected iPad sales, have driven a number of Apple suppliers in Taiwan to experience massive growth in the last financial quarter.
Taken in their entirety, the strong financial performance of Apple’s suppliers was enough to increase Taiwan’s overall export revenue to the United States in July by a massive 12.5 percent year-on-year in U.S. dollars. For those keeping track at home, that’s pretty darn impressive!
Component suppliers enjoyed stronger sales throughout July as Apple ramps up production of its next-generation iPhones.
Supply chain sources say all three models that will be unveiled in September have now entered mass-production, but shortages are still expected for iPhone 8.
Apple’s freshly unveiled HomePod speaker may soon get some competition from its Silicon Valley neighbor Facebook. The social network giant is supposedly developing a smart speaker of its own and based on a report out of Asia, it could pack some features that HomePod can’t match.
