Several Taiwanese companies in Apple's supply chain — including processor maker TSMC, and assembly firm Pegatron — are insisting that a major blackout which hit the island on Tuesday did little to disrupt production, a serious concern given the imminent arrival of new iPhones.
Four of Apple's manufacturing partners — Hon Hai/Foxconn, Compal, Wistron, and Pegatron — have filed counterclaims against Qualcomm, accusing the chipmaker of violating two sections of the Sherman Antitrust Act.
In an interview published on Tuesday, a New York University graduate student described working at a Pegatron factory near Shanghai last year as a summer project, where he assembled the iPhone 6s and later the iPhone 7.
After a few months of revenue boosted by Apple production demands, manufacturing partner Pegatron's CEO says that the company could build the "iPhone 7s" and "iPhone 8" in the U.S. if it is asked to — but Apple would have to shoulder all of the company's costs for doing so.
The chairman of Apple supplier Pegatron has revealed that his company could expand its operations in the U.S. by three to five times, should it be necessary — but even that won't make much of a dent in Apple's iPhone and Mac production needs.
Recent reports from the supply chain claim that frequent rumor target Wistron, the builder of the iPhone 5c and SE, has seized at least some future orders from Apple for future iPhone models — but what it will actually be tapped for is unclear.
Primary iPhone assemblers Foxconn and Pegatron are said to have been evaluating the ability of the company to shift production of Apple's mobile devices to the U.S., with the verdict mixed on if the move would be cost-effective.
The CEO of Apple's manufacturing partner Pegatron notes that the iPhone 7 is exceeding estimates on the strength of the phone alone, and does not believe that the Samsung Galaxy Note 7 recall is inflating sales numbers artificially.
Apple's repeated demands that suppliers cut costs have reportedly prompted "iPhone 7" manufacturing partner Pegatron to skirt the tech giant's audits with covert decreases in effective pay and increases in illegal overtime amid worsening working conditions, according to frequent critic China Labor Watch.
Apple's secondary manufacturer, Pegatron, is following in the footsteps of Foxconn and beginning to automate its factories — and cutting back on new hires as a result, according to the company's chairman.
A variety of Apple suppliers — including some stalwarts — are reportedly being hit by lower price quotes from the company, which is likewise said to be searching for new suppliers to maintain high profit margins on its products.
Like clockwork, Apple's well-established annual iPhone release cycle is on track once again, as a new report claims the company's suppliers are prepared to begin shipping the "iPhone 7" and "iPhone 7 Plus" by the end of the third quarter.
One of Apple's iPhone manufacturers, Pegatron, is still seeing its labor force put in excessive overtime — something unfortunately necessary for workers to meet basic financial needs, according to China Labor Watch.
Despite commentary from Apple itself indicating that the company is on track for a record setting holiday quarter, a hiring freeze at supplier Pegatron has fueled more speculation that interest in the company's products could be softening.
Despite pledges by Apple to improve labor conditions at its suppliers, a Pegatron factory in Shanghai is still paying low wages, allowing excessive amounts of overtime, and housing workers in poor conditions, according to China Labor Watch.
The Chinese government's decision to deliberately devalue the yuan on Tuesday could have a serious impact on sales of the iPhone and other Apple products, but under the right conditions prove a boon to suppliers like Hon Hai/Foxconn and Pegatron, analysts said.