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.
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.