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.
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.
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.
