Pegatron
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Apple paid woman millions after iPhone technicans posted explicit photos online
Apple paid a woman millions after contracted iPhone technicians posted explicit photos of her online.
Apple supplier Pegatron announces investigation following controversial BBC report
Following a BBC investigation into alleged mistreatment of employees at an Apple supply chain factory owner Pegatron has announced it will investigate the claims made in the documentary and address any issues it discovers. According to Digitimes, the company filed a statement on December 22 with the Taiwan Stock Exchange promising to implement improvements in their factories. Pegatron's statement makes no mention of Apple, which has come out strongly against the BBC's report. In an internal email, CEO Tim Cook accused the BBC of getting the facts wrong claiming, "nothing could be further from the truth." The BBC's report used hidden cameras placed on undercover workers to discover a wide range of issues in the Pegatron factory, including confiscation of worker IDs, overcrowded living conditions, underage workers, and excessively long work shifts. You can watch the BBC's report here.
You can now watch the BBC's Panorama documentary "Apple's Broken Promises"
On December 18 the BBC's Panorama aired a documentary called "Apple's Broken Promises" which questions if Apple is doing enough to protect the people who make their products. The already controversial film utilizes undercover reporters and hidden camera footage to show what life is like for workers in a Chinese supply chain factory. In the second portion of the documentary reporter Richard Bilton travels to an Indonesian tin mine, where he seeks to discover if the metal being mined is actually being used in Apple products. Apple has already criticized the report, questioning the reporting and its findings. You can read more about Apple's response right here. In the meantime you can watch the Panorama documentary below. Let us know what you think in the comments.
Apple's Tim Cook 'deeply offended' by fresh allegations of factory worker mistreatment
Apple CEO Tim Cook has said he's "deeply offended" by fresh allegations of poor working conditions in its suppliers' Chinese factories. Contractors hired by Apple to assemble its latest products have been exposed before, and while the firm has tried to be more proactive in recent years, a new BBC investigation suggests the same problems still persist. Undercover reporters hired at Pegatron factories discovered an exhausted workforce regularly falling asleep at the production line. Twelve hour shifts are common, which means employees often clock over 60 hours on the factory floor each week -- well above China's 44-hour limit, but still possibly legal given the country permits 36 hours of overtime each month.
HP's new tablets may be its way back into the smartphone world
HP has long vowed that it would revive its smartphone efforts, and it may be near that comeback -- just not with the fanfare that some were hoping for. The Information claims that the company is weeks away from releasing a slew of phone-capable 6- and 7-inch Android tablets that would target developing markets, like China and India. They wouldn't cost more than $250 off-contract, and they would reportedly be recycled designs from manufacturers like Pegatron and Quanta. While HP isn't commenting on the rumor, it's safe to say that major smartphone makers wouldn't be losing sleep over the potential launch. The tipsters suggest that HP would instead be testing the waters -- it would enter fast-growing mobile markets while it works on original hardware, corporate apps and carrier deals that would be necessary in more established areas.
Independent medical team finds no link between employee death and Apple supplier Pegatron's working conditions
After a 15-year-old worker died of pneumonia at Pegatron, a Chinese supplier, Apple had an independent team of medical experts sent to the facility to verify working conditions, Bloomberg reports. The worker had previously been cleared as healthy just a month prior to his death. An official Apple statement on the matter reads, "While they have found no evidence of any link to working conditions there, we realize that is of little comfort to the families who have lost their loved ones. We have a team working with Pegatron at their facility to ensure that conditions meet our high standards." This isn't exactly the first time that Apple -- or any large electronics manufacturer, for that matter -- has faced concerns over manufacturing practices. Foxconn, one of Apple's largest suppliers, has had an ongoing battle with employee suicides and allegations of unsatisfactory working conditions.
WSJ reports Apple cutting orders for the iPhone 5c, invites you to speculate
Apple broke routine when it launched not one, but two new iPhones at its last event. Analysts, media and consumers alike have been quick to offer opinion on how that's working out for the firm. Not least because -- despite being pitched as a cheaper alternative -- Cupertino still priced the iPhone 5c in the upper reaches of many people's budgets. So, fresh reports from The Wall Street Journal today, then, that Pegatron and Hon Hai (the two firms that assemble the iPhone 5c) have been told to cut back on production has triggered new waves of speculation. And speculation it is. The WSJ's sources suggest that orders will be cut by between 20 and 30 percent, which analysts are quick to confirm points to a slump in demand. What's not mentioned is that the same thing happened with the iPhone 5 not long after its release. Not to mention the potential impact of high demand for the iPhone 5s in its gold variant (and iPhone 5s generally, as the WSJ also notes). Or that Apple might very well have just got their stock right for the first wave of orders -- including inventory for the next round of countries to get it. We'll perhaps get a better idea from the firm's forthcoming financial reports, but for now we're left navigating passage through the bandwagons.
Pegatron employee spies a pile of iPhone 5Cs, all warming up for September
When we spotted this photo on French blog NoWhereElse, we were close to dismissing this as just a bunch of iPhone 5C knock-offs (the shanzhai industry works very fast), just as the site also speculates. But after digging around the original poster's Sina Weibo profile, we deduced that this spy shot came straight out of Pegatron's Shanghai plant, which matches what we've read in the recent China Labor Watch report on Apple. According to her posts, the cheeky employee -- or more likely an ex-employee at this point -- in question joined the company's quality control department around mid-July. In an earlier comment, she also hinted that her plant is responsible for the latest Mac mini as well. The above photo was published yesterday, and it only came with the following caption: "The low-end iPhone 5C to be launched for Chinese consumers in September doesn't look much different than the Xiaomi Phone 2, right?" While it doesn't explain what's going on in the image, this appears to be a warm-up procedure (likely just with small batches for quality control) to make sure the devices are fully functional before they are boxed up. We've seen this in factory tours before, but no photography was allowed in the production lines; which makes us wonder how this shot came out of a supposedly well-guarded environment. September couldn't come any quicker for leaky Apple.
Low-cost plastic-clad iPhone mentioned in China Labor Watch report
Remember that China Labor Watch report we recently covered? After digging further into the document, 9to5Mac's Computerworld's unearthed more possible evidence about that often leaked, low-cost plastic-clad iPhone. The introduction states: Its assembled products include iPhone 4, iPhone 4s, iPhone 5, and low-priced plastic iPhones. Then, on page 27: Today's work is to paste protective film on the iPhone's plastic back cover to prevent it from being scratched on assembly lines. This iPhone model with a plastic cover will soon be released on the market by Apple. [...] The new cell phone has not yet been put into mass production, so quantity is not as important. Of course, there's no definitive proof that Apple will be launching a more affordable iPhone made of polycarbonate -- after all the company might just be testing prototypes that are not destined to market. Still, the information in this report sure gives all these recent iPhone rumors a lot more merit. Update: It looks like it was Computerworld that originally discovered this information, and we've changed the source link to reflect this.
Apple's manufacturing partner Pegatron under fire for working conditions
Last year, Apple's primary Chinese manufacturing partner Foxconn came under intense scrutiny for complaints about how factory workers were being treated. Now another partner, Pegatron, is facing similar charges of poor treatment of workers. An upcoming report from China Labor Watch outlined in the Wall Street Journal notes a number of claims against Pegatron: Pegatron allegedly withholds worker IDs so that Pegatron employees cannot choose to work elsewhere because they lack proper ID. Living conditions are supposedly poor, with "30-minute waits to enter their production facility, tight living quarters, and packed cafeterias." Workers are allegedly working over 60 hours per week, which is Apple's limit. Apple's June Supplier Responsibility report shows an average 46-hour work week for Pegatron employees. At one Pegatron subsidiary, employees are complaining that they're provided gloves that are insufficient for protection from the materials used to make metal iPad backplates. Apple has already responded to the newly reported issues, according to the WSJ: Apple, in a statement, said it is "committed to providing safe and fair working conditions throughout our supply chain." It said that it has conducted 15 comprehensive audits at Pegatron facilities since 2007, including surprise audits within the past 18 months. Apple said it confirmed that some labor brokers were withholding worker ID cards and demanded Pegatron "put a stop" to it. The U.S. company said it will investigate claims in the China Labor Watch report and take corrective action where needed. Pegatron has taken on an increasing role in the manufacturing of products as Apple attempts to diversify its supply chain.
Apple's new suppliers are 'even worse' than Foxconn, says China Labor Watch
Just as Pegatron has managed to snatch more Apple contracts away from Foxconn, so too has it attracted greater scrutiny of the conditions faced by its 70,000 workers. China Labor Watch, the US-based worker welfare monitor, now alleges that Chinese factories run by the up-and-coming Taiwan-based manufacturer are "even worse" than Foxconn's. It claims to have found health and safety violations, poor living conditions in dorms, and the coercion of workers by withholding their pay or identity cards -- in other words, the sort of stuff that breaches both Chinese law and Apple's supplier policy. Its latest report also accuses Apple of failing to treat abuses with the same urgency that it applies to lapses in product quality. For its part, Apple has responded by highlighting the fact that it has audited Pegatron facilities 15 times in the last six years, and that a recent survey found that Pegatron employees were working an average of 46 hours per week. It also said it had dealt promptly with earlier instances of ID cards being withheld, but admitted that China Labor Watch's report includes "claims that are new to us" and that will need to be investigated "thoroughly." [Image credit: Jay Greene, CNET]
Foxconn's Q2 revenues hit $30 billion, up 0.6% year over year
Hon Hai, better known in the west as the iPhone maker Foxconn, seems to be doing just fine after allegedly losing some orders from Apple to competitor Pegatron in September 2012. According to Bloomberg, the company's second quarter revenues hit $30 billion, up 0.6 percent from the same quarter a year ago. That's far better than the 19 percent drop it experienced during the first quarter. While there's no guidance as to Q3 figures, we've got to think that an iPhone 5S can help fill those coffers.
Pegatron increases workforce by 40 percent, adds more grist to Apple rumor mill
Whenever a company involved in making Apple products adds to its workforce, the internet is flooded with "cheap iPhone" and "iWatch" stories. The latest event to perk up the rumor mongers is Pegatron, which announced that it'll be hiring 40,000 more workers in China for the second half of 2013. During an investor call, company president Jason Cheng predicted that revenue from "communication products" would increase by 16 percent between July and December -- so hopefully he's seen something on his order book to make him that confident. That said, the only solid fact we have is that the company has stated it'll be producing Haswell-powered laptops for a variety of companies, but we won't let that stop you staring at your wrist and hoping. [Image Credit: Jay Greene/CNET]
Pegatron reportedly nabs 50 to 60 percent of iPad mini orders, breaks up Foxconn's monopoly
While folks are waiting for their precious new iPhones to arrive on their doorsteps, word has it that the leaky iPad mini has unsurprisingly entered mass production, but with a twist. According to today's front page news on Taiwan's Economic Daily News, reports from two local securities firms claim that Pegatron's managed to nab a staggering 50 to 60 percent of iPad mini orders from Apple, meaning Foxconn is finally no longer the sole assembler of iPads. Together (plus component suppliers Foxlink, AUO, TPK and others), both companies will apparently be able to churn out up to 5 million iPad minis monthly. Then there's the iPhone 5 as well: the paper says at least 53 million units are expected to be shipped this year, therefore Apple's adding Pegatron to the assembling front line as early as Q4 in order to maintain a steady supply of products. Obviously we can't use this information alone to deduce whether Apple is moving away from Foxconn, but as long as people get their iDevices then it's all dandy.
Stream TV finds a manufacturing partner in Pegatron for glasses-free 3D displays
We've been hearing about (and even seeing) Stream TV's Ultra-D autostereoscopic 3D chops for a while now, but so far there hasn't been any actual hardware to show for it. That could change soon, since the company is announcing OEM Pegatron as a manufacturing partner today. Ultra-D's claim to fame is the ability to bring clear 3D to displays of varying sizes, from portables to HDTVs with no loss of quality as well as SeeCube 2D-to-3D conversion technology. Pegatron builds devices for more recognizable names like Apple, Asus, Toshiba and others, and once they're ready to build products around the tech it should be able to put them together at more affordable prices than we've seen for glasses-free 3D hardware so far. CEO of Stream TV Mathu Rajan says this partnership will help it bring Ultra-D products to customers this year, so it might be time to clear out some space next to that 3DS and Evo 3D. We'll be convinced when we have Ultra-D hardware in our own hands, but until then you can check out the full press release after the break.
Pegatron licenses Microsoft's patent portfolio for Android and Chrome devices
Microsoft may make a ton of money by selling Xboxes, operating systems, and other software to consumers, but it also pads its bottom line by monetizing its IP. Its newest patent profits will be coming from Pegatron Corp. -- a Taiwanese ODM that makes parts for a plethora of others, including Apple, ASUS and HP -- as the two companies have entered into a licensing agreement for devices running Android and Chrome OS. The agreement covers e-readers, smartphones and tablets, with Pegatron paying Redmond royalties of unknown amount. So, the Ballmer licensing bandwagon continues unabated, but we just hope all this new-found cash will be put to use creating fantastic new products instead of funding more courtroom conflicts.
Apple forcing Pegatron to stop production of MacBook Air lookalike Zenbook
Sometimes having a manufacturing relationship with Apple can have unexpected repercussions. Asia-based Pegatron, which makes iPhones for Apple at this time, is reportedly being asked to cease production of Ultrabook laptops for Asus or face the consequences of losing orders from Apple. Ultrabooks are the Wintel world's answer to the MacBook Air, and a number of PC manufacturers showed off their products at this year's CES. According to an article in the Chinese-language Commercial Times, Apple believed the MacBook Air and Asus Zenbook designs to be so similar that they asked Pegatron to stop building the Asustek devices. Pegatron stands to suffer a lot if it loses Apple contracts. Not only does the company assemble iPhones for Apple, but they're also rumored to be producing the next-generation iPads that are expected to ship next month. A blogger at 9to5Mac also wonders about how Ultrabook production could affect another Apple contractor. Quanta Computer is the largest manufacturer of notebook computers in the world, and they assemble Mac notebooks for Apple. The company reportedly purchased a number of computer numerical control (CNC) milling machines for building unibody frames for Ultrabooks. Apple could theoretically threaten Quanta to stop using the unibody manufacturing process that the Cupertino company pioneered.
Apple lists iPhone 4S as "in stock" in most online stores
Those TUAW readers who haven't yet caught Siri fever and purchased an iPhone 4S won't have to wait if they finally decide to buy one. Electronista reports that the device is finally listed as "in stock" at the Apple Store for most countries. As recent as two weeks ago, availability times were still in the three to five day range, but now the 4S is available immediately in every color and capacity. It appears that Apple has managed to get a good handle on iPhone 4S production, with 37 million devices reported as being shipped in just over three months during the first quarter results call. Part of the improvement is most likely due to the addition of Pegatron as a second manufacturer of the popular smartphones. With supply finally meeting or slightly exceeding demand, Apple now has to keep a close eye to make sure that inventories of the phone don't start piling up. The company has a reputation for keeping minimal product inventories, so production is probably being tweaked to more precisely match demand for the iPhone 4S.
Next-generation iPad rumored to be in production for March release
It's January, and that means it's time to ramp up the iPad rumors to full frenzy mode. Japanese rumor site Macotakara, which has been surprisingly accurate when it comes to speculation about upcoming iPads, says that the next-generation iPad is now in production in anticipation of a release in March, 2012. Macotakara's sources in China say that Foxconn and Pegatron will share production of the new iPad, with Foxconn grabbing a full 85 percent of the orders. The site says that the initial devices will be outfitted with Sharp LCD display panels, allowing 2048 x 1536 resolution without adding weight and thickness to the iPad. As you can see above, the Macotakara has also been accumulating images from Chinese sources of what appear to be replacement parts for the next-generation iPad. The report from Japan also includes design teasers that are in line with what iLounge's Jeremy Horwitz was stating this week -- the device is visually similar to the iPad 2, and the Smart Cover and other accessories should work with the new iPad. Horwitz reportedly saw an next-generation iPad prototype just before CES, noting that the new device is about 1 mm thicker than the iPad 2 and has a slightly larger opening for the rear camera lens. Horwitz revealed the design of the iPad 2 last year through a similar encounter, so there could be some validity to this rumor. Horwitz also noted that the prototype he saw could be as much as six months old, so the design could have changed prior to going into production. Speculation about what's under the glass and aluminum of the new device is rampant, with a quad-core A6 being seen as a possibility to power the next iPad. GigaOM's Darrell Etherington even wondered if the device might be given the "iPad 2S" moniker, indicating big changes inside with few cosmetic differences from the iPad 2. What do you think about these rumors? Would the addition of a quad-core chip make you upgrade from your existing iPad? We want to hear your opinions in the comments.
Explosion at Apple supplier injures 57 workers
The welfare of Chinese workers is back in the spotlight after an explosion at Shanghai-based Riteng Computer Accessory Company left 23 people in hospital with burns and another 34 with more minor injuries. Local government officials said the explosion happened on Saturday afternoon at a workshop on the fourth floor of the facility. Riteng is a subsidiary supplier to Pegatron Corp and the Chinese newspaper Yi Cai Daily reported it was in the middle of trial production of aluminum iPad 2 back panels. A separate explosion at a Foxconn factory back in Spring was attributed to poor extraction of combustible aluminum dust.
