Crushing demand for the iPhone 5 has proven to be too much for Apple's manufacturing partner, Foxconn, to handle, as it continues to struggle to produce the device.

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Difficulties in manufacturing the iPhone 5 are expected to affect Apple's gross margins for the near term, as the company is predicted to absorb some of the quality control costs associated with producing its latest handset.

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An official with Foxconn has explained that Apple's new iPhone 5 is the most difficult device the company has ever had to assemble, leading to constraints in production.

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Foxconn on Tuesday revealed an internal investigation found the company illegally hired some underage workers as young as 14 years old, and said that immediate measures have been taken to resolve the issue.

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Foxconn International Holdings, a subsidiary of Foxconn Technology and the largest cellphone manufacturer in the world, will reportedly take orders to build certain iPhone models in the company's first-ever Apple partnership.

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Foxconn officials on Saturday issued a statement denying a strike hit the company's Zhengzhou iPhone plant on Friday, claiming instead that the factory was the site of two small altercations days earlier which had no impact on production.

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With an official unveiling expected this month, Apple is said to be currently building "iPad mini" units at a Foxconn factory in Brazil.

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The exact cause of a riot at a Chinese Foxconn factory Sunday night remains under investigation, but employees at the Taiyuan facility returned to work on Tuesday after a one-day shutdown.

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After a riot occurred in one of Foxconn's manufacturing facilities in China, the company issued a statement on Monday to say there were no employee deaths, and that production will resume on Tuesday.

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Reports of a "mass disturbance" at Foxconn's Taiyuan factory surfaced early Monday local China time, with the purported 2,000-person riot having caused damage to the plant's infrastructure.

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A new report out of the Far East alleges that "thousands of students" are being "forced" to build Apple's next iPhone ahead of the product's launch as part of an internship at Foxconn.

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After gross margins rebounded at Foxconn parent company Hon Hai Precision, one analyst has said he believes Apple "stepped up" and helped to pay for wage increases at its manufacturing partner.

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Foxconn and Sharp are considering a $1 billion investment in a Japanese LCD plant in order to build more display panels for Apple's iPhone and other devices.

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A new report out of the Far East claims that shipments of Apple's next-generation iPhone are likely to be less than 15 million in the third quarter of 2012 due to some alleged complications in producing the device.

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A report released on Tuesday from the Fair Labor Association says Apple manufacturing partner Foxconn has corrected some 284 infractions, including steps to create a safer workplace, since the group last audited the factories in February.

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Shares of display maker and Apple supplier Sharp have plummeted so far that Foxconn's deal to buy a stake in the struggling Japanese company could be in peril.

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Reports from China claim that thousands of job seekers are lining up outside of Apple manufacturing partner Foxconn's Chengdu plant in hopes of landing a position at the factory as summer hiring ramps up ahead of rumored next-generation iPhone and smaller iPad launches.

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Supply of metal chassis for ultraportable PC notebooks remains constrained as Apple has reportedly locked up most of the capacity available from suppliers.

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A new rumor claims Sharp is set to begin delivering LCD TV panels to assembler Foxconn in order to begin building Apple television sets.

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Foxconn is said to be in talks to buy more shares of display panel maker Sharp, once again prompting speculation that their alliance could play a key role in Apple's rumored television set.

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