BlackBerry has suffered a loss of $4.4 billion for the third quarter, worse than the $965 million lost in the previous quarter and the $114 million lost in Q3 2012, the company has revealed. At the same time as the tremendous loss, the company revealed it has signed a new five-year partnership with Foxconn to create new BlackBerry devices.
A report issued by the advocacy group Fair Labor Association has praised Foxconn for continuing to improve working conditions. An audit reportedly found that three of Foxconn's factories in Longhua, Chengdu and Guanlan, each tasked with assembling iPhones and other Apple devices, have satisfied nearly all of the goals that were outlined last year in a reform plan.
Foxconn – also known as Hon Hai, assembler of Apple's iPhones and iPads – is looking to capitalize on the anticipated boom in wearable tech by starting an investment fund to finance nascent companies working in the segment. Sources familiar with the project told Bloomberg this week that Syntrend Creative Park Co., a Foxconn unit, will administer the NT$200 million ($6.8 million) fund aimed at giving the firm a hand in the development of wearable devices in the vein of Samsung's Galaxy Gear smartwatch, the Google Glass eyewear computer, and the suspected Apple iWatch. The move is the latest by Foxconn to diversify its operations to handle more things than the construction of iOS devices for its most lucrative partner.
The recent uptick in iPhone 5s supplies is connected to "around the clock" production at Foxconn, and more people being brought onto assembly lines, says the Wall Street Journal. At the supplier's Zhengzhou facilities, 100 lines are said to be operating at all hours for the 5s, with about 600 people per line. "We have been churning out about 500,000 iPhone 5ss everyday, the highest daily output ever," an anonymous Foxconn executive is quoted as saying.
Apple's main supplier, Foxconn, is planning to spend $40 million in Pennsylvania connected to a new factory, says Bloomberg. $30 million of that is going toward the factory itself, which will be based in Harrisburg and produce telecommunications equipment and Internet servers. The remaining $10 million will go toward research and development at Pittsburgh's Carnegie Mellon University.
Apple's main assembly partner, Foxconn, is halting production of the iPhone 5c at its Zhengzhou factory and shifting the labor towards the iPhone 5s, sources tell Digitimes. While Digitimes has a mixed track record, the claim is consistent with recent reports of cutbacks in 5c production. Foxconn in particular is said to be churning out just 8,000 to 9,000 units a day; the core 5c manufacturer, Pegatron, has allegedly scaled back from 320,000 phones per day in October to just 80,000.
Apple suppliers are cutting back still further on iPhone 5c production, a Chinese report says. Primary assembly partner ProTek -- better known under its parent name, Pegatron -- has slashed production from 320,000 units per day in October to only 80,000. Foxconn is said to be manufacturing units at a minimal level, only 8,000 to 9,000 per day. That company is, however, more focused on the iPhone 5s and other top-priority Apple products.
Apple is planning to add two Taiwanese firms, Wistron and Compal, to its list of manufacturing partners, says the Wall Street Journal. The company currently depends mostly on Foxconn and Pegatron. Wistron is expected to take on iPhone 5c production, whereas Compal will help build the iPad mini. Foxconn will reportedly continue to focus on the iPhone 5s, though it's known to handle a range of Apple products.
Foxconn, Apple's main manufacturing partner, is currently testing a larger iPad expected to launch next spring, possibly in March, a Chinese report claims. The device is said to be in a late phase of testing, and with a screen due to measure either 11.4 or 12.9 inches. Apple's current flagship, the Air, uses the same 9.7-inch size employed since the first-generation iPad.
Apple is cutting the production of the iPhone 5c after it experienced low demand than the company expected, according to the Wall Street Journal. Echoing similar reports from last week, it is claimed that suppliers Foxconn and Pegatron have been requested by Apple to decrease iPhone 5c production by 20 percent and 30 percent respectively.
Brazil's National Telecommunications Agency -- also known as Anatel -- has granted regulatory approval for the iPhone 5s and iPhone 5c, reports say. The agency states that the iPhones to be sold will be built at Foxconn's Jundiaí factory, near São Paulo. Documents also show that they will run on Brazil's native LTE frequency, 2600MHz; previous iPhones and iPads available in Brazil have only operated in the 700MHz band.
Citigroup has agreed to a settlement with Apple, where it will pay the Cupertino manufacturer a $30 million fine after Citigroup analyst Kevin Chang improperly distributed confidential research about an Apple supplier. The unpublished research detailed Hon Hai Precision Industry's iPhone 4, 4S and 5 component orders to Citadel, GLG Partners, SAC, and T. Rowe Price. Citigroup's research included incorrect information about iPhone orders in the first quarter of 2013, which induced SAC, Citadel, and T. Rowe Price to sell a large quantity of Apple stock, depressing the price.
Apple is getting ready to deliver iPhones to China Mobile, sources tell the Wall Street Journal. The paper notes that while it isn't clear if the two businesses have signed a formal sales agreement, the impending delivery of phones would mean that some sort of deal has been arranged. One source elaborates that Apple has asked its main manufacturing partner, Foxconn, to add China Mobile to the list of carriers that will be getting the low-cost iPhone, better known as the iPhone 5C. When Mobile might be getting the 5C is uncertain.
Apple has asked is main manufacturing partner, Hon Hai -- better known as Foxconn -- to start shipping new high-end and low-end iPhone models early next month, according to sources for the Wall Street Journal. Suppliers are said to have started parts production back in June. The sources don't have many details about the low-end phone, but do remark that the flagship device will have a metal casing and the same size and resolution as the iPhone 5.
Officials from Apple met with peers at Corning, Foxconn, and G-Tech Optoelectronics in the US about two weeks ago to talk about the production of a TV set, according to sources for Taiwan's Economic Daily News. Foxconn is reportedly asking Corning to share some data about Gorilla Glass with G-Tech, so that the latter can do surface treatments needed to produce the set. G-Tech is relatively unknown in the West, but was once rumored to be behind the anti-reflection glass for the 2012 iMac.
Hon Hai, better known as Foxconn, posted a 41 percent year-over-year increase in net profits during its second quarter, according to the Wall Street Journal. Net profits for Q2 2013 were NT$16.98 billion, or about $566.7 million US. In the same quarter of 2012, profits were NT$12.06 billion. The average forecast for this year had been NT$16.32 billion.
Foxconn and UniMicron -- two key suppliers to Apple and other high-tech companies -- are being investigated by Chinese authorities over complaints of local rivers being polluted with heavy metals. The issue was brought to the attention of the Chinese government late last week, after allegations were made public by environmental activist Ma Jun and a group of five non-profit organizations. In particular the allegations deal with the town of Kunshan, roughly 40 miles west of Shanghai, where residents say pollution has been worsening over the past decade.
China Business News is reporting that recruiters in Zhengzhou in the Henan province of China have begun a "large-scale" drive for new workers, suggesting that Foxconn is beginning the ramp-up for both Apple's next round of new iOS models as well as preparing for what is likely to be another record holiday season for the Cupertino giant. The Foxconn facility there has capacity for another 90,000 workers before it hits the 300,000-worker peak seen during the 2012 holiday rush, where Apple found itself scrambling to make the then-new iPhone 5 and iPad models fast enough to meet demand.
Hon Hai -- better known under its Foxconn brand -- has demonstrated a first-party smartwatch, reports say. The device can connect wirelessly to an iPhone, and display notifications for incoming phone calls and Facebook posts. Like some other smartwatches, it can monitor health signs like heartbeat and respiration, but with the bonus of tips on getting fitness up to par.
Apple suppliers are now engaged in "intensive delivery" of a "large number" of parts for a low-cost iPhone, says the Commercial Times. TSMC is reportedly delivering 28nm processors, while Largan Precision is supplying an 8-megapixel camera. Foxconn is providing a battery module and most of the inner frame, while Taiflex Scientific is handling a flexible circuit. Other suppliers are said to include Chipbond, Kinsus, SPIL, Texas Instruments, and Renesas Electronics.
Apple is considering a range of possible options for expanding its iPhone lineup in 2014, say four sources for Reuters, some of which are said to be with Asian suppliers. The people claim that Apple is considering two bigger iPhone sizes, including 4.7- and 5.7-inch dimensions. Suppliers have reportedly been approached with plans for the bigger screens, but whether or not they'll make it into shipping products is uncertain. "They constantly change product specifications almost to the final moment, so you're not really sure whether this is the final prototype," one source says.
Foxconn has signed a deal with Mozilla to put the Firefox OS mobile operating system onto a number of mobile devices. The smartphones, to be manufactured by Foxconn on behalf of an unnamed OEM, are also accompanied by the companies showing off a prototype tablet, one that was hinted at in a report last week.
Apple may be turning to another of its partners and away from Foxconn as the primary supplier of some future Apple products, if a report from the Wall Street Journal is correct. The paper reports that Taiwan-based Pegatron, which has a history with Apple that goes back to the original iBooks, has won the contract to be the primary supplier of a future "low-cost" iPhone model that has been rumored for months. The company already produces most of the iPad minis, and recently announced it was hiring an additional 40,000 workers for an unnamed project.
Foxconn is going to reveal a new mobile device alongside Mozilla on Monday, one that will apparently run on Firefox OS. While the event on June 3rd before Computex will showcase a new device of some description, neither Foxconn nor Mozilla have hinted at what it could be, but rumblings suggest it could end up being a tablet instead of a smartphone running the new mobile operating system.
During his testimony before the Senate on Apple's tax strategies, CEO Tim Cook restated an earlier promise that a forthcoming Mac model -- not identified -- was going to be built in the United States, and further revealed that it would be assembled in Texas. While the exact site wasn't specified, Apple has established and is expanding an administrative campus in Austin, and manufacturing partner Foxconn has facilities in Houston.
Apple is testing 1.5-inch OLED touchscreens for use in its upcoming smartwatch, claims Taiwanese publication the Economic Daily News. Apple is in fact said to have tried 1.8-inch screens, but judged that they were too big. The 1.5-inch panels are reportedly being manufactured by Taiwan's RiTdisplay, and use one-glass-solution touch sensors, which should allow Apple to keep the watch thin.
Apple's biggest supplier, Hon Hai -- better known as Foxconn -- is continuing to break Chinese labor laws, according to a newly-published audit by the Fair Labor Association. The latest evaluation was conducted in January, and did find that Foxconn is complying with 98.3 percent of the 360 points of action the FLA and Apple initially agreed to. 70 out of 76 items that were pending in mid-2012 have been complied with.
Apple has returned a batch of millions of botched iPhones to its main manufacturing partner, Foxconn, a source at the latter company tells China Business. It's believed that anywhere between 5 and 8 million units were returned for various unspecified defects. As the cost to manufacture is estimated to be $200 per phone, Foxconn could be taking a loss of as much as $1.6 billion.
Microsoft and Foxconn parent company Hon Hai have signed a worldwide patent licensing agreement that places the manufacturer underneath Microsoft's patent portfolio umbrella for devices running the Android and Chrome OS. The agreement covers patent usage in smartphones, tablets, and televisions. While specifics of the agreement are not available, Microsoft will reportedly receive royalties from Hon Hai under the agreement.
Asian manufacturer Foxconn has resumed hiring at a plant in Zhengzhou, China in preparation for a new iPhone, a Bloomberg source says. The factory froze hiring in February, but has reportedly been hiring again for the past month to meet extra capacity demanded by Apple. The added workers are expected to build not only a new iPhone but also existing models.
Taiwan-based manufacturer Hon Hai -- better known under its lead brand Foxconn -- posted a 19 percent fall in sales year-over-year during the first quarter, Reuters reports. Revenue reached T$808.97 billion, a decline from T$1 trillion in Q1 2012, as well as the T$988.34 billion the company posted in Q4. The drop is being blamed on lower demand for the iPhone.
There are conflicting accounts over attempted suicides at Foxconn's main manufacturing facility in Shenzhen, China. On Friday, initial reports indicated that two people had jumped off a building; several stories said that in all, three workers climbed to the top of building G14. One source suggests that the people were worried about their jobs. The company has seen lower orders in 2013, prompting it to find ways of shedding workers.
Hon Hai Precision Industry, closely linked to parent brand Foxconn Technology Group, has posted a record NT$37 billion ($1.2 billion US) in net income for its fourth quarter, Bloomberg reports. The figure has also surpassed a NT$35.9 billion estimate averaged using predictions from 14 different analysts. Bloomberg credits the profits to improved and greater production of the iPhone and iPad, including the introduction of new iPads and the resolution of scratched iPhone 5 casing problems, which prior to Q4 forced Hon Hai to temporarily halt work on the phone to impose quality control demanded by Apple.
Apple suppliers performed poorly during February, says Topeka Capital analyst Brian White. The claim is based on an "Apple Monitor," a collection of suppliers the analyst tracks as a way of gauging Apple's performance. Collectively the companies were down 31 percent in February, versus a normal 8 percent drop for the month. The results are bad even when considering the effect of the Chinese New Year, White says -- "the worst February we have on record."
In an update to its Supplier Responsibility pages, Apple on Wednesday now shows that the companies in its supply chain are 99 percent compliant with Apple's guidelines that individual workers -- of which Apple now has more than one million in China and Taiwan -- are limited to no more than 60 hours of work per week. While seemingly a high figure by western standards, factory workers often seek overtime in an attempt to escape the cycle of rural poverty or to support elders in the family. The company reports that the average number of weekly hours is now below 50.
Asian manufacturer Foxconn will soon allow workers to elect union representatives for the first time, says UK newspaper The Telegraph. Under the arrangement, a chairman and 20 members of the Federation of Labour Unions Committee will be elected every five years. The Financial Times remarks that the current representatives weren't nominated in an open and transparent manner; over half of the committee members are in fact from management, making it easier for Foxconn executives to fight any changes they don't like.
Some Apple suppliers will keep manufacturing through the Chinese New Year to meet the company's demands, Taiwan's United Daily News reports. Hon Hai, better known as Foxconn, is said to be keeping a portion of production lines open to assemble the iPhone 5 and iPad mini. A circuit board supplier, Flexium Interconnect, will reportedly keep its Kunshan plant going through the Chinese New Year, using students it has trained for the work.
A new report by the New York Times suggests that working conditions at Foxconn factories have improved since a January piece in the paper helped trigger changes at the manufacturer. After media and public backlash, Apple and the Fair Labor Association began auditing Foxconn, finding problems such as excessive working hours and poor safety standards. Executives from Apple and Foxconn met in March, which led to reductions in worker hours and better wages.
A pair of unconfirmed reports from the sometimes-accurate Taiwanese trade publication DigiTimes claims that Apple is exploring the idea of moving Mac mini production to a Foxconn Electronics facility in the US, and that Apple is evaluating switching its iOS devices to IGZO display panels in a rollout of revisions across 2013. Sharp, the company behind the IGZO technology, has allegedly licensed Innolux Corporation and may possibly add AU Optroics to help produce displays.
Foxconn has bought an almost 9-percent stake in sports camera maker GoPro. The Taiwanese electronics giant agreed to pay $200 million for the shares, which will see Foxconn founder and CEO Terry Gou join the GoPro board. The purchase gives GoPro a valuation of around $2.25 billion, based on Foxcon's ownership of 8.88-percent of the company.
Amazon has reportedly chosen Foxconn to produce the online retailer's rumored self-branded smartphone. Unnamed sources have told Taiwan Economic News the contract manufacturer "actively scrambled" to establish the exclusive supply deal, as some of its other clients—Nokia in particular—struggle to gain traction in the smartphone market.
Even as Apple promises some US-assembled Macs, Foxconn, one of Apple's largest manufacturing partners, is reportedly looking to expand its North American operations in the near future. The Taipei-based manufacturer, which already has operations in California and Texas, cites growing customer demand for American-made devices as the reason behind the shift. Foxconn Chairman Terry Gou said at a forum last month that the company would be interested in bringing US engineers to Asia to train them in manufacturing before sending them back to work in US-based Foxconn facilities.
Hon Hai subsidiary Foxconn CMMSG Industria de Electronicos has bought 350 acres of land near Sao Paulo, Brazil with the intention of building a new factory to assemble smart phones, tablets and other electronics. The deal will create a fifth Foxconn factory in Latin America, and at least the second such facility in Brazil. Foxconn has paid $12.6 million for the land, and will spend more than $490 million building the new facility. The current factory in Brazil is said to be one of the primary assembly plants for the iPad mini. The future facility could be used for expanded production in the Americas.
Foxconn is considering establishing its first manufacturing plants in the US, according to "market watchers" cited by DigiTimes. Locations in cities like Detroit and Los Angeles are currently said to be under evaluation. Foxconn is based in based in Taiwan, and does most of its manufacturing in China, exploiting the cheap labor costs there.
Foxconn is being overwhelmed by demand for the iPhone 5, according to the Asian manufacturer's chairman, Terry Gou. Reuters reports that Gou made the comments to reporters following a business forum. "It's not easy to make the iPhones. We are falling short of meeting the huge demand," he said. Production is currently being handled by Foxconn brand Hon Hai Precision Industry; Gou has declined to say whether Foxconn International Holdings might be handling some of the overflow. Normally FIH handles only non-Apple products.
Taiwanese contract manufacturer Foxconn has acknowledged production difficulties with the iPhone 5, including its new coating that appears to be prone to scratching. An unnamed official at the company told The Wall Street Journal that the iPhone 5 is "the most difficult device that Foxconn has ever assembled."
Foxconn has reportedly admitted that several underage interns were revealed during an internal investigation at its Yantai facility. The company has yet to disclose how many underage workers were found in the plant, though some of the interns are said to be as young as 14 years old.
According to a new report by New York based China Labor Watch, approximately 3,000 workers at the Foxconn Zhengzhou factory have gone on strike off of the onsite quality control line, paralyzing multiple iPhone 5 production lines for the entire day. A combination of tightening quality control requirements coupled with mandatory shifts during the holiday reportedly led to violence and the strike. The strike echoes an event from last month, where 2,000 workers at a different factory staged a walkout and strike, shutting down production for a day.
The Wall Street Journal has corroborated reports suggesting that Apple has started production of its rumored smaller iPad mini. On Monday, Macotakara cited sources from Foxconn’s Brazil factory that also said that production of the iPad mini had begun. According to the Wall Street Journal’s Asian supply chain sources, iPad mini mass production has also commenced in China as well.
Production of the so-called iPad mini is in progress at a Brazilian factory, says a source for Macotakara. The person doesn't name the manufacturer, but it would almost certainly be Foxconn, Apple's main supplier, which opened up a Brazilian plant just this year. Additionally the source claims that the production version of the new iPad is missing a microphone hole on the back, despite earlier mockups suggesting one, and the presence of a rear mic on the iPhone 5.
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