Foxconn, the Chinese company that manufactures iPhones, iPads, and Macs for Apple, and electronics for many others in the industry, has recently been hacked by a group called Swagg Security. They’re currently sharing the fruits of their labour on The Pirate Bay. In a statement accompanying the leaked files, Swagg Security laid out their intentions (or lack thereof).

“We switched on BBC Radio, the leading source of unbiased material. A short segment on the manufacturer giant Foxconn, came up reporting on the inhuman conditions the workers experience. A few days later an almost viral rumor about an Iphone 5 with a 4-inch screen being manufactured, as claimed by an employee from the infamous Foxconn. Now as a first impression Swagg Security would rather not deceive the public of our intentions. Although we are considerably disappointed of the conditions of Foxconn, we are not hacking a corporation for such a reason and although we are slightly interested in the existence of an Iphone 5, we are not hacking for this reason.”

So Swagg is doing it all “for the lulz”, or just for the fun of it, in typical anonymous hacker fashion. According to their anarchist philosophy, screwing things up for big companies and corporations is a reward in and of itself. After flipping through the files, I didn’t see anything much beyond a few hundred username/password combos which will likely be useless information once Foxconn resets everybody’s credentials. CEO Terry Gou’s e-mail address is in the files, which may have been used among other addresses to place fake orders through services.foxconn.com, but the site has for now been taken down. Beyond that, the only lasting effect I could imagine from the whole affair is improved attention to security on Foxconn’s part.

Despite bruised pride, I see hacking that points out security holes without doing permanent damage to the company as fairly productive, once the victim patches up its system. If those behind the hacking get a good laugh out of it too, all the better. What do you think? Is anarchist hacking good to keep tech companies on their toes, or do these attacks need to be political in nature to be justified? Or is disrupting the operations of companies in any way ethically wrong, no matter how much of a philosophical spin you put on it?

Source: Swagg Security statement via Electronista

SumOfUs has launched a petition to get Apple to create the iPhone 5 in a fully ethical manner, and has already garnered over 40,000 signatures. The petition is particularly critical of Apple’s use of n-hexane, a harmful glass cleaner which can cause neurological damage over long-term exposure. Inhumanely-long working hours are also called into question.

Apple CEO Tim Cook remains adamant that the company is doing its best to ensure the well-being of manufacturing employees abroad. Even within the fast-paced technology sector, however, Apple is well-known for cultivating a high-stress culture, and those standards are imposed on just about everybody Apple works with. Under these conditions, it’s no surprise that basic humanitarian standards take a back seat to shipping a product. That said, I might agree with this petition, but I really doubt Apple or Foxconn will make any sweeping changes that hurt their bottom line.

If you’re interested in signing the petition, hit the link below.

[We'll post links to the petitions for HP, Dell, Sony, Nokia, Motorola, HTC, Amazon, Lenovo, Toshiba, Samsung, and every other technology company who operates in similar manners without enjoying the link-bait status that seems to drive online media attention. We want everyone held to the same, high standards. - ED]

Source: SumOfUs via The Register

Apple’s largest production partner, Foxconn, has plans to build five new production plants in Brazil to help support the growing demand for the iPad tablet.

Officials from Foxconn and the Brazilian government will reportedly meet following the Chinese New Year to decide on where the factories will be built, but São Paulo is said to be pushing heavily for the investment. [...] In addition to helping supply Apple with iPads, the factories will be tooled for notebook and general electronics production. [...] A Foxconn representative declined to confirm its Brazilian expansion plans to Economia, calling the report “pure speculation.”

This news comes shortly after iPad production in Brazil got a generous tax break from local government following Foxconn reportedly investing up to $300 million in a São Paulo factory. The new production facilities could house up to 1,000 employees each, with officials from Foxconn and the Brazilian government said to be meeting after the Chinese New Year in order to make a final decision on the desired location.

With Apple selling through over 15 million iPads during Q1 2012, increasing production to help meet future demand is a no-brainer. And although Brazilian-made iPads may be a little behind schedule, adding more facilities to the mix can only help the situation in terms of availability.

Source: Folha via AppleInsider

While Brazilian-made iPads might be a bit behind schedule, they’re shaping up to be ready shortly. The government has recently confirmed that Foxconn has qualified for local tax breaks, which they’ll be happy to get after pouring $300 million into the country to make its third factory in São Paulo and hiring 1,400 local workers. Foxconn has earned exemption or reduction from IPI (a federal tax added to production materials) and PIS (a tax to pay for unemployment insurance and low-wage workers). Apparently the rule will apply to all tablets weighing less than 750 grams, so in theory, Foxconn could benefit from these tax cuts when building tablets for competitors, too.

Foxconn has invested more than $12 billion into the whole affair, which was all put at risk as the manufacturing giant demanded special treatment from the Brazil government before setting up shop.

No doubt a manufacturing facility will do wonders for Apple’s penetration in Latin America, but I would be curious to see how much it helps us here in North America – after all, shipping from Brazil would be much faster than from China, at least on paper. I would be a little surprised if the Brazilian shipping infrastructure was as strong as Shenzhen’s, so it might actually be a close race. Even as a back-up to the main supply line from, this Brazilian plant will do good things for making sure iPads are well-stocked around the world.

Source: Folha via AppleInsider

Seth Weintraub from 9to5Mac has a source within Foxconn that claims Apple is readying the iPhone 5 — as it’s apparently being called — for production in time for a summer release. The leak also claims:

• 4+ inch display (made by LG on at least one of them)
• No teardrop-shaped devices as were rumored in the lead up to the iPhone 4S. Samples so far have been >- symmetrical in thickness. Also longer/wider.
• None of the sample devices have the iPhone 4/4S form factor
• None of the devices are final versions

Given Apple has already re-used the iPhone 4 form factor for the iPhone 4S, it makes sense they wouldn’t revisit it again for the iPhone 5. Likewise, the oft-rumored teardrop form-factor, while seen in other devices, doesn’t really seem to fit within Apple’s existing iOS device design language.

Again, no word on 4G LTE network connectivity, which while increasingly common in the U.S. still isn’t widespread internationally.

However, since none of these devices were considered the final version, and since Apple can and will make changes well into the production cycle, it’s best to take everything with a 4-inch grain of salt.

We’ll find out for sure when Phil Schiller holds it up on stage. Or someone leaves it in a bar…

Source: 9to5 Mac

According to japanese news site macotakara, Apple has issued build orders to Foxconn and Pegatron for the iPad 3, which is expected to hit in March.

This first lot production implements LCD’s, which are produced by Sharp Electronics Corporation, and aims to be shipped at early March, source told.

It has been rumored that Sharp will produce the new IGZO (indium gallium zinc oxide) iPad 3 panels, with a purported Retina display resolution of 2048×1536.

If Apple intends to stay on their spring release schedule, it makes a lot of sense for them to be getting orders in place now.

Source: macotakara

Foxconn is planning to double the size of their iPhone factory in China at a cost of $1.1 billion dollars, according to Chinese news site China Daily.

The base will be centered on the Foxconn Science Park in Zhengzhou, provincial capital of Henan, increasing its current production lines to 95, said the Henan provincial development and reform commission during a conference. The expansion plan, costing 7 billion yuan ($1.1 billion), is expected to bring $20 billion in sales revenue in 2012, the commission said.

Foxconn is Apple’s largest contractor and this new plant will be employing around 130,000 workers who will subsequently be able to pump out around 200,000 iPhones per day. That’s around 18 million iPhones per quarter.

Add in other contractors, and consider that Apple has the iPhone 3GS, iPhone 4 and iPhone 4S currently available in the retail market, and it gives us a hint at Apple’s own estimates on the amount of iPhone sales we’ll be seeing throughout 2012.

Approaching 100 million.

Source: China Daily

9to5Mac posted some thoughts on what they think happened with the more ambitious iPhone 5 update that some were expecting to be announced at Apple’s Lets Talk iPhone event earlier this month.

The iPhone 4S as you see it was originally planned to be released at WWDC with iOS 5, like every iPhone before it [...] But something happened around February of this year that threw everything off. Apple was still integrating the Siri team and code into iOS and it was going much slower than planned. At the same time, Apple’s iPhone 5 (teardrop) plans were moving along on or ahead of schedule and the first prototypes were testing well. With mid-October being the earliest possible date of a Siri-fied iOS being ready – with “Apple-levels” of polish –Apple had to look at its options.

This could explain the iPhone 5 case leak-a-palooza we saw just before the iPhone 4S announcement.

TiPb’s own sources are split on this, with some saying Apple had planned iPhone 5 as the new iPhone, and iPhone 4S as souped up iPhone 4 for the mid-range market. Others insist iPhone 4S was the plan all along, and no redesign was ever in the cards for this year (or at least, wasn’t considered for long).

9to5Mac‘s sources expect the redesigned iPhone to be announced in summer of 2012. TiPb’s still hearing fall 2012, but this far out Apple can and will keep plans as flexible as possible.

Hit the link below for a full breakdown.

Source: 9to5Mac

Bloomberg reports that Apple has cut iPad 2 orders from Foxconn in China by up to 25%, which likely indicates Apple shifting production to the new Brazilian plant, according to JPMorgan analyst Mark Moskowitz.

Several supply-chain vendors indicated in the past two weeks that Apple lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen. The report didn’t list the affected companies, and Gokul Hariharan, one of the report’s authors, said he couldn’t comment when reached by Bloomberg News today.

We think it’s a bit premature to pin this on Apple gearing up for iPad 3 production, as TiPb recently heard Apple had returned iPad 3 to the traditional spring schedule. Instead, the idea of Apple shifting production to the new plant seems more likely. Earlier this month, The Brazilian Minister of Science and Technology, Aolizio Mercadante, has confirmed that the new Foxconn factory in Jundiai Brazil is up and running.

Moskowitz believes Apple will sell between 10.9 and 12 million iPads during the 4th quarter, up from 9.25 million in Q3.

Source: Bloomberg

According to a report by Brazilian technology website UOL, the Brazilian Minister of Science and Technology, Aolizio Mercadante, has confirmed that the new Foxconn factory in Jundiai is up and running. The iPad 2 production line is in operation and they will begin shipping this December.

At first many doubted, but it will be the first time that the company will produce iPads outside Chinese territory. We are taking a big step for digital inclusion in the country,” he said. Mercadante also said that the federal government will announce in the coming days to invest in a big factory of games in the Manaus Free Zone.

[MacRumors]

According to randomly accurate rumor site Digitimes, Foxconn is currently rolling out around 150,000 iPhone 5 units a day. The information comes from industry sources. Pegatron Technology who were thought to have won around 15% of the iPhone 5 manufacturing orders may not start shipping until 2012 according to the same sources.

Lens maker Largan Precision, touch panel maker TPK Holding, reinforced glass supplier G-Tech Optoelectronics and battery vendors Simplo and Dynapack are all operating at full swing currently, the sources indicated.

[Digitimes]

If you’re not a fan of quasi-offensive Taiwanese 3D animated technology humour, then move right along. Otherwise, hit play after the break and enjoy some iPhone and iPad creating robot crazy.

[MNA.tv]

Xinhuanet reports that future iPads and iPhones might just be built by robots, that is if manufacturing giant Foxconn goes ahead with plans to replace workers with up to 1 million mechs:

[Foxconn] currently has 10,000 robots and the number will be increased to 300,000 next year and 1 million in three years, according to [Foxconn founder and chairman, Terry Gou].

Gou announced the robotics initiative during a company dance party, which presumably they’ll have less of in the future. Unless, of course, they’re replacing workers with dancing robots.

[Xinhuanet via MacRumors]

Despite the recent rumor that Apple was looking to add a second manufacturer to its iPad supply chain, DigiTimes‘s magic 8-ball now says it won’t happen… this year at least. Foxconn has convinced Apple that it can manage the whole iPad operation on its own.

Foxconn has exerted its efforts to protect its orders and apparently has persuaded Apple to not shift some of its iPad orders to other contractors for the moment.

[DigiTimes]

It looks like last week’s explosion at a Foxconn facility in China has taken another life, bumping to total fatalities to 3. The facility was a “polishing plant” mainly used for production of the iPad 2.

A third worker has died from an explosion at a Foxconn plant in China that makes Apple products, the contract manufacturer said on Sunday. The company said it us still investigating the blast, but said initial findings suggest “that the accident was caused by an explosion of combustible dust in a duct.”

The explosion and consequent fire breaking out at Foxconn’s production base of iPad 2 in Chengdu City, western China, has not affected the assembly lines of the tablet PC, according to Taiwan-based Chinese-language newspaper Commercial Times (CT).

It’s not clear whether or not the explosion will have any affect on iPad 2 production. The specific location of the explosion within the plant only stored coating lines and chemical materials and wasn’t near iPad 2 production. However, the plant remains closed for now, and given constrained components and manufacturing yields, there could be some effect down the road.

Still, this was a very unfortunate event for the families and friends of those who were lost, and we’re glad to see Apple working closely with Foxconn to help make sure this type of thing is avoided in the future.

[Digitimes, AllThingsD]

Foxconn’s Chengdu, China based iPad 2 factory suffered an explosion earlier today which killed at least two people.

Foxconn said the situation has been brought under control by the fire department and the “cause of the explosion is being investigated by local police.” The company said it is cooperating with the investigation and production at the site has been suspended until the investigation is completed.

It apparently occurred in the “polishing plant” at around 7pm local time.

“We are working with medical officials to provide treatment to the injured employees and we are working with government and law enforcement officials to contact the families of all employees affected by this tragedy,” Foxconn said in its statement, confirming the fatalities and 16 injuries.

Our hearts are with the people of Foxconn, their friends, and families.

Update: Apple has issued a statement [Mobilizer]

“We are deeply saddened by the tragedy at Foxconn’s plant in Chengdu, and our hearts go out to the victims and their families,” Apple said in a statement provided to All Things D. “We are working closely with Foxconn to understand what caused this terrible event.”

[The Wall Street Journal]

A new rumor says Apple may be seeing supply constraints for the iPad 2 and iPhone 4 due to material and labor shortages at a Foxconn facility in Chengdu, China.

Taiwan-based electronics manufacturing service (EMS) provider Foxconn Electronics (Hon Hai Precision Industry) is reportedly facing a shortage of both labor and materials at its plants in Chengdu, China, which is likely to affect shipments of iPad 2 and iPhone 4 orders in the second quarter, according to sources from upstream component makers.

They claim Apple estimates quarterly sales for the iPhone 4 at around 20-22 million units and iPad 2 in the 10 million unit range. Foxconn prepared these facilities to accommodate roughly 40 million iPad 2 units annually, and although the China plant in question doesn’t push out as much iPad 2 volume as their Shenzen plant, the impact could still be measurable if consumers find it difficult to pick up the tablet as demand grows.

This also goes against comments made by Apple COO Tim Cook during their quarterly earnings call where he indicated Apple felt confident with their iPad 2 supply plans, and that they should subsequently have an easier time meeting demand going forward.

We’re hoping this rumor is off-base but your guess is as good as ours. Let us know what you think in the comments!

[Digitimes]

Looks like the CDMA variant of Apple’s iPhone might eventually make its way to carriers in China, Korea, and Japan. According to the not always reliable Digitimes, Apple suppliers currently expect around 7 million CDMA iPhones to be sold in the first quarter of 2011. That’s a lot of iPhones, no matter how you look at it.

Apple’s two main suppliers, Foxconn and Pegatron are also slated to turn a large profit this year due to the release of a CDMA variant. Foxconn started shipping the CDMA variant of the iPhone 4 back in December 2010, while Pegatron has started shipping this month. Digitimes maintains that Foxconn will ship solely to the United States while Pegatron will ship to other countries such as China, Japan, and Korea. The Verizon iPhone is set to double the number of iPhone users in the market alone. With these other countries added to the CDMA list, the iPhone will be available to a whole new array of customers as well.

I’d say with the GSM and CDMA variants set to be available on even more carriers and in more countries, Apple is in for a year of record numbers. It’s also great that customers in the US now have a choice. And if you’re in the US and not sure which to pick, take a look at our Verizon vs AT&T iPhone comparison.

[Digitimes]

DigiTimes is claiming that, according to Taiwan based component suppliers, Apple has its iPhone shipment targets for the first quarter of 2011 from 19 million units to 20-21 million units. This would be up from their estimated 15.5 million units shipped in the fourth quarter of 2010. Additionally:

The first-quarter shipment goal for WCDMA iPhones has been adjusted from 13 million units to 14-15 million units, the sources said. The shipment goal for CDMA iPhones, which will be launched in North America and Asia Pacific in the first quarter, is set at 5-6 million units, the sources added.

We have all heard the rumors of an early 2011 Verizon launch but could these numbers indicate a possible reality to finally put an end to Verizon iPhone rumors? Looks like we have just a little more waiting to do as 2011 is just around the corner now.

[ DigiTimes ]

Is Foxconn about to increase what it charges Apple (and other companies) to produce products like the iPhone and iPad?

Oct 13 (Reuters) – Hon Hai (2317.TW), the world’s largest electronic parts maker, will raise prices from October for some clients, including Apple (AAPL.O), according to a Citibank analyst, a Taiwan newspaper reported on Wednesday.

Citibank analyst Chang Kaiwei said Hon Hai would also raise prices for Nokia (NOK1V.HE), Microsoft (MSFT.O) and Sony Ericsson (ERICb.ST) (6758.T), helping to push up its fourth quarter profit, according to the Commercial Times newspaper.

If an iPhone was made in North America, it would probably cost $5000. Will Foxconn hold the line on prices at the expense of corporate profits (and, you know, maybe increasing their workers’ standard of living?), will Apple give up margin and eat the increase to keep prices the same for consumers, or will will all be paying more for iPhone, iPad, and the other gadgets we love?

[New York Times]

As manufacturer Hon Hai/Foxconn opens their facilities for an unprecedented media tour in the wake of a growing number of worker suicides, Apple has issued the following statement:

“We are saddened and upset by the recent suicides at Foxconn. We are in direct contact with Foxconn senior management and we believe they are taking this matter very seriously. A team from Apple is independently evaluating the steps they are taking to address these tragic events and we will continue our ongoing inspections of the facilities where our products are made.”

In addition to Apple, Dell, HP, and others are also looking into conditions at the Shenzhen, China based manufacturer.

Apple has previously posted a supplier responsibility progress report.

[Reuters, Bloomberg]

Maybe it’s me; maybe it’s a fanboy thing; maybe it’s my desire to impose more text on screen about this, but when I read people calling an HTC HD2/Dragon/Passion device absent HTC branding “THE Google Phone” (now officially caught on camera, see above), I can’t help but think that if we go back to 2007 and Steve Jobs had taken the stage at Macworld and pulled out an HTC Excalibur with Apple branding on it, even if it had an Apple OS, it wouldn’t have been “THE iPhone” and it certainly isn’t what Apple did or what we as consumers got.

“This changes everything” say many blogs. Certainly, for Google’s Android partners, competing against the Google brand, and bank, and engineering team changes a lot. And if they sell it unlocked (assuming they put a radio in it that can support all 4 US carriers, including both AT&T and T-Mobile 3G, and Verizon and Sprint EVDO) it will change things for the carriers, and for users who are accustomed to paying subsidized prices.

Before Apple released the original iPhone in 2007 there was talk (read: hope) of Apple releasing it unlocked, and talk (read: more hope) again with the iPhone 3G. (TiPb even predicted that as WWDC 2008′s “one more thing” — and boy were we wrong). It sounds great and we gadget geeks love it, but the truth is unlocked devices coast $700+, as anyone currently trying to import an HTC HD2 or Xperia X10 are no doubt aware.

The iPhone became a phenomenon when it hit $199 and a bigger one when it hit $99 through heavy carrier subsidies. Next June/July when another iPhone comes along, current owners will again be livid if AT&T doesn’t cut them a break on costs, even if they haven’ fulfilled their own end of the 2 year contract again. Google could possibly try to self-subsidize with the intent on making back the money via advertising (or online services, though they traditionally give those away for free in exchange for the aforementioned ad revenue), and that really would “change everything” if it worked. (Hey, TiPb’s joked Google should just give free cell service to everyone in the US. Then it’s game over.)

This might be a great phone. It might be the best smartphone to date. But for an end user, how will it be different than if HTC simply released the Dragon/Passion/HD2 running Android 2.1?

So, unless the above is just an HTC shell for as-yet-unrevealed and totally redesigned-by-Google hardware (or Google just buys HTC like they’re buying everything else), it might well be a Google-branded phone, but it’s not “THE Google Phone”, at least not in the way the iPhone was and is Apple’s.

[Clarification: I'm not commenting on Google or their phone initiative here, I'm commenting on the coverage. Google hasn't announced a Google Phone. As their blog (which we linked to previously) plainly says, they're running tests with a partner, aka HTC, device. It's the coverage that's dubbing it Google Phone and a game changer. At this point, based on the image, it looks like an HTC device -- like an HD2/Passion/Dragon in Hero wrapping. And that's fine. That's great. If it's sold unlocked and runs on standard GSM 3G, I'd probably even buy one just to have fun with, sans contract. Analogies to the iPhone and Foxconn are completely off base, however. Foxconn isn't selling dozens of other devices, and certainly isn't selling other devices running iPhone OS X. Apple produces "THE iPhone". So far, this is a really interesting Android phone packaged by Google (instead of HTC or Verizon). But it's not "THE Google Phone". I suspect that one, running Chrome OS and using only Google Voice and VoIP, is still pending, and that well could be the next game changer.]

Foxconn is rumored to be producing 300,000 – 400,000 of the much hyped, still fabled Apple iTablet for introduction sometime in Q1 of 2010 says DigiTimes. This, of course, is the next stage of any good Apple rumor evolution, after specs and before random case leaks…

10.6 inch screen from Innolux Display, focus on digital print like e-books, good battery life, killer UI, etc. are all mentioned as well.

Now we just need Steve Jobs to say something dismissive like “people don’t read”… Oh, wait…

iPhone 4.0 SDK Sneak Preview event should be held March 2010. Might we have an earlier event to look forward to now as well, the iTablet Introduction?

As has been widely covered on the net, Foxconn worker Sun Danyong of Shenzhen, responsible for 16 fourth-generation iPhone prototypes, committed suicide on July 16, after reporting one of the prototypes missing three days earlier.

Foxconn is the Taiwanese company that has long manufactured Apple iPods and the iPhone. Colleagues informed the Chinese media that Sun notified them over internet chat that he was confined, abused during interrogation, and had his property searched. Foxconn chief of security, Gu Qinming, who refutes the allegations, has been suspended.

Apple released the following statement to CNet:

“We are saddened by the tragic loss of this young employee, and we are awaiting results of the investigations into his death. We require our suppliers to treat all workers with dignity and respect.”

Commercial Times (via Inquirer/MacRumors) is saying Taiwan’s Foxconn — which manufacturers the iPhone — is set to do similar for Apple’s rumored… iSomething..

iTablet and iNetbook chatter has been growing almost faster than any other Apple rumor lately. While we have no reason to believe Apple will join the race-to-the-bottom, razor-thin netbook market proper, strings in iPhone 3.0 firmware revealing an iProduct to make us think something is coming. Eventually.

Meanwhile, Software Advice has posted up a nice summary of why such a device, especially if it’s an iTablet, would be a compelling offering for verticals like healthcare.