Apple That

Foxconn, Apple’s controversial manufacturer of almost all things with the prefix “i” isn’t producing as many iPhones as Apple wants, nor are they producing them fast enough according to the company’s chairman. Foxconn is arguably the biggest supplier of parts and construction for Apple’s iPhone, iPad, iPod, etc…

According to Foxconn Chief Terry Gou in a recent interview with Reuters, “It’s not easy to make the iPhones. We are falling short of meeting the huge demand.” In addition to that, Gou was unable to say which iPhones are actually difficult to produce as Apple is still currently selling three different models: the iPhone 4, iPhone 4S and iPhone 5.

Despite not revealing the product, it is presumed that Gou was referring to the latest iPhone 5. An unidentified Foxconn official told The Wall Street Journal last month that producing the iPhone 5 is “very complicated”, causing supply issues. The official went on to say that the smartphone is “the most difficult device that Foxconn has ever assembled.”

Apple’s iPhone 5 is thinner and taller than its predecessors and also comes with a few improvements over the 4S, including 4G LTE support and a new, smaller Lightning port. That means that Foxconn’s workers are putting a lot of components into an increasingly smaller shell.

Apple is definitely displeased. The iPhone 5 is scheduled to ship in three to four weeks for people who order it now with customers who are actually going to the store to buy one facing similar wait times. Apple is all about getting its technology into as many hands as possible as fast as possible, so set backs like this are almost inexcusable, especially with other smartphones on the market, like the Galaxy S III, being highly favorable replacements to the iPhone.

Source: CNET – Foxconn chief: We can’t keep up with iPhone demand

Apple just announced that the Fair Labor Association will be allowed to conduct special, voluntary audits of Apple’s final assembly suppliers. This includes companies like Foxconn factories in Shenzhen and Chengdu, China, at the bequest of Apple itself. A certified team of labor rights experts, led by FLA President Auret van Heerden, began the first inspections Monday morning at Foxconn City in Shenzhen.

According to CEO of Apple Tim Cook, “We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers. The inspections now underway are unprecedented in the electronics industry, both in scale and scope, and we appreciate the FLA agreeing to take the unusual step of identifying the factories in their report.”

The FLA, as a part of its assessment, will interview thousands of employees about working and living conditions, including health and safety, compensation, working hours and communication with management, since there are workers which even work from home, we can also make sure we properly monitor employees working from home if we have a lot working remotely as we need to be sure what they are doing. The FLA’s team will go through manufacturing areas, dormitories and other facilities while also conducting an extensive review of documents related to procedures at all stages of employment.

Apple’s suppliers have agreed to give full cooperation to the FLA as well as unrestricted access to every aspect of their operations. Whatever the FLA finds and recommends from the first assessment will be made public in the beginning of March. Similar inspections will then be conducted at Quanta and Pegatron facilities in the spring. Once completed, the FLA’s assessments will have covered more than 90% of Apple’s suppliers.

Apple became the very first technology company admitted to the Fair Labor Association when it was approved back in January. The FLA conducts independent monitoring as well as verification to ensure that the FLA’s Workplace Standards are upheld wherever FLA company products are created.

Source: Engadget – Apple opens up inspection of its Foxconn plants to Fair Labor Association

Apple – Fair Labor Association Begins Inspections of Foxconn

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Everybody knows that the iPad 3 is coming and Apple may be pitting suppliers against each other to assemble the next generation product. Apple is said to have awarded a contract to manufacture the iPad 3 to Taiwan-based Pegatron, according to a report from the Taiwan Economic News.

If this turns out to be true and not a rumor (yeah, cuz rumors always end up being true), then this would mean that Apple is looking to reduce its dependence on long-time partner Hon Hai as the only supplier of the award-winning tablet that is dominating the market at the moment.

Pegatron is already doing business with Apple actually. The company is responsible for building and shipping the iPhone 4 and has reportedly already landed a contract to construct the iPhone 5, whenever that may be.

Hon Hai has been the predominant supplier of the iPhone and the iPad in the past, though Apple has been looking for an additional partner to take on the production of the device. This may be due in large part to the devastating explosion that took place at Hon Hai’s Chengdu plant back in May.

Apple has faced issues with the iPad 2 as supply was unable to keep up with the increasingly overwhelming demand of the product. By branching out production of the iPad 3 to two different suppliers, the company is likely trying to avoid a similar situation with the iPad 3.

Aside from adding Pegatron to its supplier list, Apple will also keep its current supply chain intact. The report pointed to TOK Holdings providing the touch panels, Simplo Technology and Dynapack International Technology the battery packs, Largan Precision the camera lenses and Foxconn the outer PC housings.

Source: CNET – Apple reportedly looking at two suppliers for iPad 3

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