We’ve been talking a lot recently about the so-called “budget iPhone” that Apple will in all probability announce in September, but exactly how “budget” are we talking about here?
Now, the CEO of the rumored manufacturer of the budget iPhone is speaking up, and telling shareholders not to expect it to be cheap.
Apple is looking to diversify its presence in the Asian supply chain, according to a new report from The Wall Street Journal. Instead of partnering with Foxconn to make the rumored budget iPhone, Apple has reportedly commissioned Pegatron, a rival factory, to build the device.
Foxconn has been making the majority of Apple’s products for years, but under the leadership of Tim Cook, the umbilical cord is being cut.
Hon Hai Precision Industry, better known as Foxconn, has long been Apple’s biggest manufacturing partner, with around 60-70% of its revenue coming from the Cupertino company. But local rival Pegatron is hoping to change that.
By offering Apple more competitive prices and sacrificing its profit margins, Pegatron appears to be securing iPhone and iPad assembly orders that would have normally gone straight to Foxconn.
If you want proof Apple is planning a ‘budget’ iPhone to address untapped markets, look no further than a new report which says that Apple’s suppliers are going on massive hiring sprees… and citing the imminent arrival of a new, cheaper iPhone as the cause.
Before we read any further into these claims, let me just reveal where they came from: DigiTimes. While the site has published a few accurate reports on upcoming Apple products in the past, most of its rumors are worryingly farfetched.
The latest claims sources in Apple’s supply chain have detailed the Cupertino company’s launch plans for 2012, promising three new iOS devices between now and the end of the year. One of those will, as you’d expect, be the sixth-generation iPhone, but before that, we will see a new, 7-inch iPad.
What’s more, that new iPad you just bought will apparently be replaced by an even newer one during the fourth quarter.
While investigations into the working conditions in its Chinese factories still underway, Apple has now commissioned an independent environmental group to review its supply chain and identify any environmental concerns. The reviews are set to begin next month, and will focus on the environmental impact of factories belonging to Foxconn and one other unnamed supplier.
Chinese sources revealed earlier this week that Apple’s third-generation iPad is now in production and scheduled for a launch in early March. It was reported that the device would sport a long-awaited Retina display supplied by Sharp.
However, that may not be the case. According to a new report from Korea’s Electronic Times, Apple turned down Sharp’s displays after they failed to pass the company’s approval process, and decided to use panels from Samsung and LG Display instead.
Foxconn Electronics and Pegatron Technology have reportedly begun production of Apple’s next-generation iPad 3. The new device is expected to boast a high-resolution Retina display from Sharp, according to one report, with a launch scheduled for early March.
Yesterday, we reported about an explosion at a Shanghai iPad 2 factory owned by Foxconn that injured 61 people, some seriously. It’s the second time in the last year an explosion has rocked an iPad 2 factory, and it’s now been seemingly confirmed that both explosions happened for the same reason: a build-up of aluminum dust in the factory area that eventually combusted.
A Pegatron plant in Shanghai, China, where rear panels for Apple’s iPad will be manufactured, suffered an explosion over the weekend which hospitalized 23 workers and injured a further 38. Though the explosion did not cause a fire, according to a Reuters report, the Pegatron factory reports there is “some damage” to machinery.
Let’s just take a few minutes away from the stories surrounding Steve Jobs and Tim Cook and talk about the iPad 3. We know it’s not going to launch this year — I’d have put money on that from day one — but according to one report it could go into production as early as October… without Samsung on-board.
It’s increasingly beginning to look like that rumor claiming the iPhone 5 won’t launch until October was incorrect. Not only has Apple reportedly sent the fifth-generation device for carrier testing — a step taken only weeks before a scheduled launch — but according to DigiTimes, the company has ordered 10 million iPhone 5 units expected to begin shipping in September.
Following recent rumors that Apple may be adding a second manufacturer to its iPad supply chain for the launch of a third device, Foxconn Electronics has reportedly “exerted its efforts to protect its orders” and has “persuaded” Apple not to shift production of the device to a second contractor.
Yesterday was a big day for Verizon iPhone rumors. Hot on the heels of a rumor that Apple was working to create a reprogrammable SIM Module that might open the door to dual GSM/CDMA compatibility comes a perhaps contradictory report from the always dicey Digitimes that suggests that Cupertino has already awarded the build contracts for a CDMA iPhone to two of the biggest Asian electronics makers.
