WebProNews

Tag: Foxconn

  • Foxconn Issues Accelerate Apple’s Plans to Diversify iPhone Production

    Foxconn Issues Accelerate Apple’s Plans to Diversify iPhone Production

    Apple is stepping up its plans to diversify its iPhone production, moving more manufacturing out of China.

    Apple has long been dependent on China for the production of its products, with Foxconn building the iPhone. Unfortunately, Foxconn has experienced a wave of protests at iPhone City, its facility in Zhengzhou.

    According to The Wall Street Journal, Foxconn’s issues have resulted in Apple looking to accelerate its attempts to move some production outside of China. The company was already looking to move at least a quarter of its production to India, but this latest development has underscored the need to have diversified manufacturing.

    “In the past, people didn’t pay attention to concentration risks,” Alan Yeung, a former US executive for Foxconn, told WSJ. “Free trade was the norm and things were very predictable. Now we’ve entered a new world.”

  • Workers at the Main iPhone Factory Engage in Violent Protests

    Workers at the Main iPhone Factory Engage in Violent Protests

    iPhone shipments are set to take another hit as workers at supplier Foxconn’s main factory engage in violent protests.

    Apple is heavily reliant on Foxconn for the manufacture of its iPhone, with Foxconn’s Zhengzhou plant one of the single biggest components in that supply chain. The Zhengzhou area is responsible for such a large portion of iPhone production that it is often referred to as “iPhone City.” iPhone City has already had its share of production issues, most recently being subjected to new COVID restrictions amid a rise in cases.

    According to CNN, violent protests broke out at iPhone City, stemming from what appears to be a broken promise to new workers. Foxconn launched a major recruitment drive, promising a 3,000 yuan bonus after the first 30 days, with a second 3,000 yuan bonus after the first 60 days.

    New workers who were hired, however, are reporting they were told on arrival they would not receive their first bonus until March 15, long after the promised 30 days.

    “The new recruits had to work more days to get the bonus they were promised, so they felt cheated,” the worker told CNN.

    For its part, Foxconn blamed the confusion on “a technical error (that) occurred during the onboarding process.”

    “We apologize for an input error in the computer system and guarantee that the actual pay is the same as agreed,” the company said.

    In the meantime, the protests became bad enough that Foxconn promised workers 8.000 yuan if they would quit, along with another 2,000 yuan once they board outgoing buses.

    While the problem appears to be on its way toward a resolution, the protests will likely result in further delays in iPhone production.

  • COVID Lockdowns in China Impacting iPhone 14 Shipments

    COVID Lockdowns in China Impacting iPhone 14 Shipments

    Apple is warning that new COVID restrictions and lockdowns in China will have a negative impact on iPhone 14 shipments.

    News broke last week that the area around Foxconn’s primary iPhone plant in China was locked down for seven days as a result of a surge in COVID cases. The Zhengzhou plant is nicknamed “iPhone City” as a result of its size and importance, accounting for 80% of all iPhone 14 capacity, and as much as 85% of the iPhone 14 Pro.

    Apple has released a statement acknowledging that shipments will be delayed as a result of the restrictions:

    COVID-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility located in Zhengzhou, China. The facility is currently operating at significantly reduced capacity. As we have done throughout the COVID-19 pandemic, we are prioritizing the health and safety of the workers in our supply chain.

    We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.

    We are working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker.

  • Foxconn’s ‘iPhone City’ Area Locked Down Over COVID

    Foxconn’s ‘iPhone City’ Area Locked Down Over COVID

    The area around Foxconn’s “iPhone City” plant has been locked down as a result of an increase in COVID cases.

    Foxconn is Apple’s primary iPhone manufacturer and its plant in Zhengzhou is its main one, leading to the nickname “iPhone City.” China has a well-established reputation for aggressively locking down areas hit with COVID, and the country’s authorities are doing so with the Zhengzhou region, according to Bloomberg.

    The lockdown is scheduled to last seven days, until November 9…provided the outbreak doesn’t get worse.

    With Zhengzhou accounting for 80% of iPhone 14 capacity and 85% of the iPhone 14 Pro’s capacity, the lockdown is sure to impact iPhone 14 availability, although only time will tell how much.

  • Apple Poised to Move a Quarter of iPhone Production to India

    Apple Poised to Move a Quarter of iPhone Production to India

    Apple is preparing to move a significant portion of its iPhone manufacturing to India as it tries to lessen its reliance on China.

    The global pandemic shone a light on the challenges associated with relying on a single country for manufacturing. As lockdowns and quarantines impacted production, Apple and other companies were left scrambling to keep up with demand. The ongoing trade war between the US and China has exacerbated the situation, leading many companies to diversify their production.

    Apple is looking to India for iPhone manufacturing, with plans to move as much as 25% of its production to that country, according to TechCrunch. The news comes via a JP Morgan research note predicting that 5% of global iPhone production will be based in India by late 2022. By 2025, that number will grow to 25%.

    The same report also held good news for Vietnam, with Apple moving 20% of iPad and Apple Watch production there by 2025. In addition, the country will also make up 5% of MacBook and 65% of AirPod production.

    JP Morgan’s note correlates to news that Foxconn, Apple’s primary manufacturing partner, is investing $300 million in Vietnam manufacturing.

  • Foxconn Investing $300 Million in Vietnam Manufacturing

    Foxconn Investing $300 Million in Vietnam Manufacturing

    Apple supplier Foxconn plans to invest some $300 million in its Vietnam manufacturing facilities in an effort to increase production.

    Vietnam has been working to establish itself as a center for tech manufacturing. Reports surfaced last week that Apple is looking to move Apple Watch and MacBook production to the country for the first time ever. As a result, it’s not surprising that Apple’s biggest manufacturing partner is looking to expand its in-country production.

    According to Reuters, “Foxconn has signed a $300 million memorandum of understanding with Vietnamese developer Kinh Bac City (KBC.HM) to expand its facility in the north of the country to diversify and boost production.”

    Foxconn’s new factory will sit on 125 acres in the Bac Giang province and will reportedly create 30,000 jobs in the local economy.

  • iPhone Production Halted by Soaring COVID Cases in China

    iPhone Production Halted by Soaring COVID Cases in China

    iPhone production has been halted at Foxconn factories in China as a result of soaring COVID cases.

    Foxconn is the primarily manufacturer of Apple’s iPhone, and any factor impacting that company has a profound effect on Apple’s production. According to Gizmodo, China reported 1,437 new COVID cases Monday, prompting Beijing to shut down all non-essential business operations in Shenzhen, where Foxconn has two factories.

    “The operation of Foxconn in Shenzhen, China has been suspended from March 14 onwards in compliance with the local government’s new covid-19 policy. The date of factory resumption is to be advised by the local government,” a Foxconn spokesperson told Gizmodo.

    “Due to our diversified production sites in China, we have adjusted the production line to minimize the potential impact. Meanwhile, we have required all the employees to have covid PCR test on top of existing prevention measures to ensure the health and safety of our employees,” the spokesperson continued.

    With Apple just announcing the new iPhone SE, it remains to be seen how much this development will impact orders.

  • Working Conditions Prompt Apple to Put Foxconn Plant on Probation

    Working Conditions Prompt Apple to Put Foxconn Plant on Probation

    Foxconn’s India plant is on probation after Apple received complaints about working conditions.

    Foxconn is Apple’s primary manufacturer. The company builds and assembles many of Apple’s products. While most of its factories were in China, the company has been expanding to other countries to help it and Apple diversify the supply chain.

    According to TechCrunch, one of Foxconn’s India factories has been placed on probation following complaints about subpar food and accommodations. The factory, in the state of Tamil Nadu, employs roughly 17,000 people. Apple took the action it did after dispatching independent auditors to investigate complaints it received.

    “We found that some of the remote dormitory accommodations and dining rooms being used for employees do not meet our requirements and we are working with the supplier to ensure a comprehensive set of corrective actions are rapidly implemented,” a spokesperson told TechCrunch.

  • Foxconn Entering EV Production in Europe, Latin America and India

    Foxconn Entering EV Production in Europe, Latin America and India

    Foxconn is working to become a powerhouse in the electric vehicle (EV) market, planning on production in Europe, Latin America and India.

    Foxconn is mainly known as an electronics manufacturer, and is the primary company Apple uses to assemble its products. The company has been looking to diversify, however, and the EV market is one of the primary industries it is expanding into.

    According to Reuters, Foxconn Chairman Liu Young-way said the company is planning on making EVs in Europe, Latin America and India, and will “indirectly” work with German automakers. He also indicated production in Mexico was an eventual possibility.

    Liu did not elaborate on specifics, due to non-disclosure issues.

    “Europe will be a bit faster, I agree with that. But as to where, I can’t tell you,” he said.

  • Foxconn Boss: China’s ‘Days As The World’s Factory Are Done’

    Foxconn Boss: China’s ‘Days As The World’s Factory Are Done’

    Hon Hai Precision Industry Co. (Foxconn) Chairman Young Liu has said China’s “days as the world’s factory are done,” largely because of the US-China trade war.

    Foxconn is the primary manufacturer of Apple’s iPhone, as well as a leading manufacturer for other smartphones and devices. The company has primarily operated factories in China, where there is an entire ecosystem geared toward tech manufacturing.

    US officials have grown increasingly worried about the tech industry’s reliance on China, especially after the pandemic hit. As factories across China shut down, countless US companies saw production significantly impacted. The escalating trade war between the US and China has only made things worse.

    As a result, according to Bloomberg, Liu believes manufacturing will become decentralized across the world, with manufacturing ecosystems in the Americas, India and Southeast Asia. Already Foxconn has managed to move 30% of its manufacturing outside of China.

    Meanwhile, officials have been focusing on boosting semiconductor manufacturing within the US to help end reliance on China. It would seem there is merit to Liu’s prediction.

  • Coronavirus: Apple Stores May Run Low On Replacement iPhones

    Coronavirus: Apple Stores May Run Low On Replacement iPhones

    Apple is warning its store personnel that supplies of some replacement iPhones are running short, and extra measures may be required to assist customers.

    According to an internal memo that AppleInsider has confirmed, Genius Bar personnel (Geniuses) have been informed that some iPhone replacements may be in short supply over the next few weeks. Geniuses are being encouraged “to offer to mail replacement devices to customers and provide ‘loaner’ iPhones in the meantime.”

    Apple has already informed investors it will miss its quarterly guidance as its production and supply chain have been impacted as a result of measures to stop the spread of the coronavirus. Apple’s main manufacturing partner, Foxconn, just informed its own investors that it won’t be back to full production until the end of March, after weeks of its China factories being shut down or running at limited capacity.

    Under Tim Cook, Apple is legendary for maintaining an extremely streamlined supply chain. This is one of the factors behind the company’s success clearing out old inventory right as new products are launched. In situations like these, however, a very tight supply chain can be a two-edged sword.

    This latest warning by the iPhone maker is further evidence of the widespread impact the coronavirus is having.

  • Foxconn Expects to Reach Full Production by End of March

    Foxconn Expects to Reach Full Production by End of March

    Foxconn is informing investors that it plans to “reach full seasonal capacity by the end of March.”

    Foxconn is one of the biggest electronic manufacturers, and the primary maker of Apple’s iPhone. The company has been dealing with restrictions the Chinese government has imposed on travel and business, leading to its factories in China to be shut down. Three weeks ago the company received permission to reopen its Zhengzhou factory, although it was only at 10% capacity initially.

    According to the presentation (PDF) to investors, Foxconn is focused primarily on the safety of its employees, and it continues to comply with governments’ guidelines and requirements regarding the reopening of its factories.

    “As of today, the production resumption has reached 50% of seasonal required

    capacity,” reads the document. “Based on the current schedule, we shall be able to reach full seasonal capacity by the end of March.

    “There are still plenty uncertainties which we can not quantify the potential impact on the full year. However, AI, semiconductor and 5G are still critical catalysts for the long-term. Therefore, we believe some demands will be pushed out to later of this year.”

    The coronavirus has already led to Apple, Microsoft and many other companies issuing updated guidance, as the virus continues to spread and impact a variety of industries.

  • Foxconn Cleared to Reopen Zhengzhou Factory

    Foxconn Cleared to Reopen Zhengzhou Factory

    According to Reuters, Foxconn has received clearance from the Chinese government to reopen its factory in Zhengzhou.

    Reuters’ sources said “about 16,000 people, or under 10% of Foxconn’s workforce in Zhengzhou, have returned to the plant” in the wake of the coronavirus outbreak. The company is also negotiating with authorities for permission to open their other factories as well.

    Foxconn had earlier said it did not foresee any impact to its production as a result of the virus. In spite of the company’s optimism, Reuters’ sources last week warned the government-mandated shutdowns could have a major impact on iPhone production if they went beyond the initial February 10 cutoff.

    The reopening of the Zhengzhou factory is a good sign, and hopefully Foxconn will be able to reopen the rest sooner rather than later.

  • Coronavirus Could Impact iPhone Production

    Coronavirus Could Impact iPhone Production

    Following assurances from Foxconn that the coronavirus would not impact its production, it appears factory shutdowns are on the verge of doing just that and impacting iPhone output in the process, according to Reuters.

    The Chinese government has told companies to shut down production until at least February 10, and Foxconn has stopped “almost all” production as a result. According to Reuters, a “source told Reuters on Monday that Foxconn has so far seen a ‘fairly small impact’ from the outbreak as it was utilizing factories in countries including Vietnam, India and Mexico to fill the gap, adding that the company will be able to make up for the delay if factories work overtime after the ban.”

    The real concern is if production is stopped beyond February 10. If manufacturing remains stopped for weeks, a month or more, the impact to Foxconn’s output, and the iPhone specifically, would be “big.”

    This is just the latest indication that the coronavirus could have severe implications across various industries as governments and agencies around the world struggle to deal with the outbreak.

  • Coronavirus Impacting Apple’s China Operations

    Coronavirus Impacting Apple’s China Operations

    When discussing Apple’s Q1 2020 results, CEO Tim Cook told CNBC the coronavirus is impacting the company’s operations in China.

    According to Cook, the company is restricting employee travel in China and has already closed one store. Apple is also cutting back retail store hours as a precaution.

    “We’re restricting travel to business critical travel,” Cook told CNBC’s Josh Lipton. “For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well.”

    One of Apple’s main manufacturers, Foxconn, earlier stated it foresaw no impact to its manufacturing timetables as a result of the coronavirus. While that may have been some good news for Apple, it appears the overall effects of the outbreak will still impact the company.

    In fact, in their quarterly earnings report, Apple issued a wider-than-normal guidance for Q2 largely because of the virus.

    “The situation is, is emerging and we’re still gathering lots of data points and monitoring it very closely,” said Apple CFO Luca Maestri, according to Digital Trends. “We have a wider than usual revenue range for the second quarter, due to the greater uncertainty. We’re closely following the development of the coronavirus.”

  • Foxconn Foresees No Impact From Coronavirus

    Foxconn Foresees No Impact From Coronavirus

    The Verge is reporting that Taiwanese company Foxconn will not be adjusting manufacturing schedules or closing factories as China struggles with the coronavirus outbreak.

    Foxconn manufactures electronics for numerous companies and is probably most well-known for manufacturing Apple’s iPhones. The company operates several factories on the Chinese mainland. In the wake of the coronavirus outbreak, China has put as many as 15 cities in lockdown, with Wuhan—where the virus was initially identified—under virtual quarantine. Financial experts around the world are warning the virus could have serious consequences across industries.

    In spite of the dire circumstances, however, Foxconn does not foresee any impact to its manufacturing.

    “Foxconn is closely monitoring the current public health challenge linked to the coronavirus and we are applying all recommended health and hygiene practices to all aspects of our operations in the affected markets. Our facilities in China are following holiday schedules and will continue to do so until all businesses have resumed standard operating hours,” the company said in a statement, according to The Verge.

    “As a matter of policy and for reasons of commercial sensitivity, we do not comment on our specific production practices,” the company continues, “but we can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations.”

    It remains to be seen the impact the virus will have on business and world economies, but Foxconn’s statement should help reassure at least some sectors.

  • Fiat Chrysler And Foxconn Partner To Develop Electric Vehicles

    Fiat Chrysler And Foxconn Partner To Develop Electric Vehicles

    The Wall Street Journal is reporting that Fiat Chrysler and Foxconn are working together to develop electric vehicles.

    Fiat Chrysler may be the eighth largest automaker, but it lags significantly behind in the electric vehicle market. This is a long-term problem the company must deal with, as both China and Europe have increasingly been cracking down on automotive emissions.

    Foxconn, on the other hand, is well known in the electronics industry and is one of the main companies behind the success of Apple’s iPhone manufacturing. The company has been working to branch out into other industries, and its “chairman, Young Liu, said during an investor call in November that electric vehicles were one area the company was focusing on for future growth,” according to the WSJ.

    The company had indicated it was not interested in building the entire car itself, but providing a chassis platform for automakers to use. That approach was evidently agreeable to Fiat Chrysler.

    While Fiat Chrysler did not return the WSJ’s request for comment, regulatory filings in Taiwan provided evidence of the proposed joint venture, with Foxconn having roughly a 40% share.

  • iPhone 6 Leaks Show Size Comparison And (Possible) Green Color

    The iPhone 6 is rumored to be released in September. Not only are people clamoring to know all the special features Apple has planned, but they want to find out what the phone will look like too.

    If rumors are to be believed, the iPhone 6 will have a 4.7-inch display, much larger than all the previous phones. So much larger, Insider Sonny Dickson decided to post comparison pictures. The following is his explanation:

    “Pictures of the iPhone 6 Mockup have been circulating throughout the web. I’ve gone ahead and compared the Mockup to older generations of the iPhones and the iPod Touch 5G, as well as the HTC One M8 and Samsung Galaxy S5.”

    What followed were lots and lots of pictures.

    Speaking of pictures, Dickson also tweeted a photo originally posted by Macfixit showing the new iPhone case to be a disgusting puke-green color.

    Post by Sonny Dickson.

    Of course, anything leaked may or may not be what goes up on shelves in September, but it’s not stopping people from creating mock-ups based on leaked blueprints.

    All the leaks has gotten Apple quite upset. In fact, the company appears to have been collaborating with the Chinese Government to stop the leaks. Dickson tweeted the following about the subject:

    Then he proceeded to go into detail on his blog:

    “On May 27th, Shen Zhen Customs (Shenzhen anti-smuggling governing body), and Hua Qiang street authorities, stormed the YuanWang Mall to try to catch some of those smugglers and whoever was said to sell Apple/Samsung/Nokia/etc units, or fake Apple/Samsung/Nokia units. More than 120 government officials are involved in this operation.

    Apple may have had a role in this raid, since Apple have the ability to track all serials & activations between HK and China.”

    Image via YouTube, CNET

  • Foxconn Reportedly Looking To Use Google’s Robots

    Google has been acquiring robotics companies with plans to implement robots in manufacturing settings (among other places), and as it turns out, the company has already been working with one well-known manufacturer to do just that.

    The Wall Street Journal is reporting that since last year, Foxconn, known for making Apple hardware, has been working with Google’s Andy Rubin, who is leading the company’s robot charge. Foxconn reportedly wants to speed up deployment of Google’s efforts (which may include a robot OS) at its factories.

    According to the report, Foxconn chairman Terry Gou “expressed excitement over new automation technologies demonstrated by Rubin.”

    The New York Times revealed late last year that Goole had acquired seven robotics companies including Schaft, Industrial Perception, Meka, Redwood Robotics, Bot & Dolly, Autofuss (specializing in video production) and Holomni. Here’s a look at some of the technologies produced by these companies.

    Later, news came out that Google had also acquired Boston Dynamics, makers of a variety of shiver-inducing robots.

    It’s clear that Google possesses the technology and talent to build robots that can reach far beyond the manufacturing space (and into the wall-scaling Terminator space), but it would appear the company isn’t wasting any time in getting some real practical use out of some of these presumably sizable investments.

    Image via YouTube

  • BlackBerry Taps Foxconn to Manufacture Future Devices

    BlackBerry today unleashed a near-unfathomably bad third quarter financial report. The company reported a $4.4 billion loss and a 56% year-over-year decline in revenue.

    This dismal quarterly was expected after the taste investors got from BlackBerry’s nearly $1 billion second-quarter loss. John Chen, BlackBerry’s new interim CEO, has also made it clear that he will be making sweeping changes to the company, including a renewed focus on enterprise mobility services for revenue.

    As part of these changes BlackBerry announced today that it has entered into a five-year with Foxconn to develop and manufacture BlackBerry hardware. Foxconn is the largest tech manufacturer in the world, having gained that position due to its role as the primary manufacturer of Apple products, including the iPhone.

    BlackBerry stated that the first device that will be a part of the deal will be an smartphone for Indonesia and “other fast-growing markets.” This implies that BlackBerry is looking to produce low-cost smartphones to compete in emerging markets where industry watchers believe most industry growth will come from over the next few years. BlackBerry is targeting “early 2014” for this Indonesian device’s launch.

    “This partnership demonstrates BlackBerry’s commitment to the device market for the long-term and our determination to remain the innovation leader in secure end-to-end mobile solutions,” said Chen. “Partnering with Foxconn allows BlackBerry to focus on what we do best – iconic design, world-class security, software development, and enterprise mobility management – while simultaneously addressing fast-growing markets leveraging Foxconn’s scale and efficiency that will allow us to compete more effectively.”

  • Foxconn to Expand U.S. Operations in Pennsylvania

    By winning contracts for most of Apple’s mobile devices over the past five years, Chinese manufacturer Foxconn has become one of the largest companies in China. Though the company is still sitting at the forefront of smartphone, tablet, and other technology manufacturing industries, its executives are planning for a long-term future.

    Foxconn group president Terry Guo has announced that the company intends to invest $40 million more in its U.S. operations in Pennsylvania. The new investment will be a part of the company’s “Advanced Manufacturing in America” initiative and is in-line with reports last year that held the company would be opening manufacturing plants in the U.S.

    According to a DigiTimes report, Foxconn will pay $30 million to expand a research and development team tasked with laying the groundwork for a manufacturing facility in Pennsylvania. The plant will reportedly be used for manufacturing products related to the medical, automotive, and environmental industries. The company will hire 500 new employees through the expansion. In addition to the expansion, Foxconn will be paying Carnegie Melon University $10 million to research robotic industrial automation.

    This new investment comes as Foxconn is expanding its operations beyond the manufacturing sector. The company this summer applied for a 4G LTE spectrum license for Taiwan, suggesting it may soon become a mobile provider in the country. Foxconn also recently opened a $25 million research and development center in China to test products and house a new cloud computing datacenter.