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.
