A new video has surfaced that gives us an extremely rare look at the iPhone assembly line within a Foxconn factory. Seeing one of these lines in action is a very rare occurrence as Apple is well known for keeping its production processes and products secret. The video is shot in Foxconn’s Zhengzhou plant where over seventy percent of Apple’s iPhones are now made.

The video which is provided by iFeng, shows a Chinese reporter with Foxconn CEO Terry Gou taking a tour around the extensive factory. The tour starts in a helicopter to give an idea on the sheer size of this huge factory. It covers 5.6 square kilometers (2.2 Square miles) with more expansion planned and employs around 115,000 workers.

The factory part of the tour starts off in the iPhone 4S production line where you can see the iPhone 4S frame and motherboard. The motherboard line is 148 meters long and rolls out 10,000 units a day. The tour continues into the camera assembly area which is all done in a clean room environment.

You can watch the video below, the dialogue is all in Chinese and we don't have a translation yet.

Source: TNW via MIC Gadget

Update: Not surprisingly, Foxconn has denied the statement, telling The Next Web:

“Any reports,” the statement reads, “that Foxconn confirmed that it is preparing to produce a specific product for any customer are not accurate.”

Foxconn chiarman Terry Gou was recently quoted as saying that the manufacturing giant is making preparations for an Apple "iTV" television set, which included buying a significant stake in Sharp for access to LCD displays.

Previous rumors suggested that an Apple-made television would include Siri-style voice recognition and Kinect-esque motion detection, but that's all unconfirmed for now, and I would just as soon chalk it up to wishful thinking.

Steve Jobs was quoted in his biography as having "cracked" the formula for a smart TV set, something beyond Apple's existing set-top box is likely on the way. But Jobs has also said how tough the go-to-market situation is for televisions and the living room, with the cable and satellite providers being far more numerous and enjoying far more monopoly control than even carriers do in the mobile phone space.

We have heard Apple has television concepts in the labs, but it would be more surprising at this point if they didn't. Whether they ever choose to ship an Apple branded television set remains the question. Gou may be in a position to know, given Foxxcon's relationship with Apple, but it's really difficult to see him knowingly leak that sort of information. He couldn't imagine Apple being happy about it, if true, could he?

As always, we'll believe it when we see it. TV is the third screen that Apple has yet to make an agressive play for. Apple TV, from launch until this day, remains a hobby; something for Apple enthusiasts more than the mainstream. If Apple does decide to launch a television, and they do it right, their sphere of influence stands to expand massively.

That being said, we still can't see people lining up to buy a new one every year, especially not at the price that size display, and that type of technology would necessitate.

What would an Apple television need to have for you to drop, say, a thousand bucks or more on one?

Source: China Daily via AppleInsider; The Next Web

Foxconn's CEO Terry Gou recently revealed that they intend to split the initial costs of improving factory working conditions with Apple following an extensive third-party audit of the facilities where iPads and iPhones are made.

We've discovered that this (improving factory conditions) is not a cost. It is a competitive strength. I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs.

Gou didn't go into any further detail as to how much these improvements would cost or how much of it Apple would take care of, but it's certainly not uncommon for Apple to invest in Foxconn's facilities. One of the bigger changes at Foxconn facilities has been to dial back overtime hours, which is something not all employees are thrilled about, though Foxconn had promised that wages would go up to counterbalance the loss of hours.

Apple has been very proactive in supporting Foxconn with these changes, and they can't afford not to be; as the mobile industry leader, all eyes on on Apple to find and expose weaknesses, especially if it stands to put a dent in Apple's generally-outstanding public image. The fact is, brutal factory conditions are a natural part of the labor landscape in China, and from the sounds of things, Foxconn is one of the better places to work.

Does Apple deserve a pat on the back for pitching in to support its partner, or is it a responsibility that all smartphone manufacturers should take up?

Source: Reuters

Since January, Apple's supply chain laborforce has jumped from 84% compliance with overtime standards to 95%, according to this month's Supplier Responsibility report. Apple is also reporting that they're now monitoring 800,000 workers, which is up from 500,000 previously. This follows on the Fair Labor Association's report issued just a few short weeks ago claiming that excess overtime was a big problem at Foxconn's production facilities. Apple has pledged that they'll maintain income levels for employees who are limited within the 60-hour work week, but many laborers doubt that they'll walk away with the same amount of money while working fewer hours.

Beyond overtime issues, Apple faces scrutiny over using underage workers to build iPhones and iPads. The average age is a relatively low 23 years, with between 3.6% and 5.5% aged 16 to 18, according to the FLA audit. On other fronts, Apple is getting flak for energy efficiency in their data centers, though they have been aggressively defending their eco-friendliness.

In any case, good on Apple for increasing overtime compliance so quickly. Foxconn is on a hiring spree, which should make up for the lost overtime hours and hopefully provide employees enough time to, y'know, sleep.

Source: TNW

If you want to see how an iPad is assembled at a Foxconn factory, a new video reveals some of the processes involved. The video shows an iPad assembly line and focuses on the installation of the motherboard into the iPad casing, the installation of the battery, a visual inspection of the rear panel for scratches, the fitment of the LCD panel and then tests of the gyroscope and the display. The iPad is then packaged and ready for despatch.

The video is part of a series of reports by Rob Schmitz; who is only the second ever reporter given permission to access the factory floor at Apple’s iPad assembly line.

Source: Marketplace via TNW

The Fair Labor Association's report about working conditions at Foxconn, Apple's primary manufacturing partner, vouched that workers would see fewer overtime hours without a change in pay, but employees aren't convinced that they'll be able to keep the same level of income. A few workers commented at the factory gates on being allowed a maximum of 49 hours a week, including overtime.

"We are worried we will have less money to spend. Of course, if we work less overtime, it would mean less money," said Wu, a 23-year-old employee from Hunan province in south China. ... "We have just been told that we can only work a maximum of 36 hours a month of overtime. I tell you, a lot of us are unhappy with this. We think that 60 hours of overtime a month would be reasonable and that 36 hours would be too little," she added. Chen said she now earned a bit over 4,000 yuan a month ($634).

The FLA said that they would be doing a study on cost of living around the three factories they had audited, and based on that, will be determining if wages are adequate. Here's an interview with the association's CEO, which I think gives an interesting and likely more realistic perspective on Foxconn working conditions.

The Fair Labor Association has just wrapped up its independent audit, commissioned by Apple, of the working conditions at Foxconn. After interviewing over 35,000 workers from three different factories, the FLA said their "nearly month-long investigation revealed serious and pressing noncompliances with FLA’s Workplace Code of Conduct, as well as Chinese labor law." Sounds serious, right? Well, to be fair, the above graph represents the degree to which the Foxconn factories are meeting FLA and standards of national law, and as the FLA had reported earlier, Apple's factories aren't doing particularly bad. The FLA established four major areas where Foxconn needed to improve: working hours, health and safety, industrial relations and worker integration, and compensation and social security insurance.

First, average weekly work hours are beyond the legal limits across all factories, and some employees worked 7 days straight, despite the legal requirement to have at least a single 24-hour break. Foxconn promised to be compliant as of July 1... 2013. Apparently they need to hire more people in order to make up for the hours, which lines up with previous reports of a Foxconn hiring spree.

Secondly, workers felt insecure, especially after that explosion caused by aluminum dust last spring. While Foxconn made safety procedure changes following the incident, they've promised to keep a sharper eye on safety infractions; instead of just keeping records of incidents when work has stopped, they're now going to keep tabs on every employee injury.

Thirdly, Foxconn laborers have no say in who is appointed to representative committees, which means they're more or less puppets to the agendas of managers.  To fix that, Foxconn is going to introduce an election process, and to improve their sense of empowerment, Foxconn is going to give a copy of their Collective Bargaining Agreement, and offer union information during orientation of new employees.

Lastly, Foxconn has been illegally putting interns to work for shifts longer than 8 hours, and no more than 5 days a week. As it turns out, Foxconn has had them working night shifts and overtime. Also, 14% of workers are only paid unscheduled overtime by the half hour, so they don't get anything for working 29 minutes. Foxconn promises that they'll knock that down to 15 minutes. Insurance is also an issue. 99% of the workers in two factories are migrants, but since insurance is doled out on a provincial basis, they can't collect if they ever go hom. Foxconn is going to look into private alternatives.

While there's some stuff here that needs to be fixed, none of it sounds insurmountable. Even though it sounds like they're working hard, only 17.7% of respondents said they worked too much, while 33.8% actually wanted to work more. As for the age of workers, the FLA found the average to be around 23, and that the percentage of those aged 16 to 18 to be between 3.6% and 5.5%, depending on the factory.

In any case, it's really good to see a proper report like this, even compared to Nightline's piece. Getting into specific numbers and specific processes gives us a much clearer idea of how Apple is churning out millions of iPhones and iPads. Hopefully this level of scrutiny sets a new bar for other electronics manufacturers in China.  It's good that Apple is being proactive in getting the FLA involved, but it's hard to tell if they're getting a little too involved... Would this report have been a little more harsh if Apple wasn't paying them dues to be in the association?

The FLA will be following up on this investigation to make sure the changes are implemented. You can find the FLA's full report, complete with appendices over here. It's definitely worth a gander.

Foxconn, Apple's infamous manufacturing partner, today invested heavily in Sharp, a prominent Japanese display manufacturer. Hon Hai, Foxconn's parent company, now owns 46.5% of Sharp, while Sharp will retain another 46.5% and Sony keeps their 7% stake. As a part of the agreement, Hon Hai will be able to acquire up to half of the large LCD panels and modules made in Sharp's Osaka plant. The factory will be managed by a third company agreed upon by all of the stakeholders.

Foxconn spent $US 1.6 billion (132.5 billion Yen) buying 121.65 million shares from Sharp in the deal. Incoming president Takashi Okuda explained Sharp's move, particularly in light of their steep losses this year.

We needed to take action as we face a strong yen and a rapidly changing business environment. It’s no longer an option to do everything from development, design, manufacturing, marketing and customer service. It’s more important for us to collaborate with business partners to be competitive in the market.

As you might recall, Sharp was rumored to provide screens for the new iPad, but was unable to keep up, Now that they're moving to being more of a manufacturing partner, maybe they'll be able to refocus and get Apple the Retina displays they need.

Source: Sharp, Bloomberg,image credit

Now that the new iPad is out the door, Foxconn has started hiring to build the next iPhone. According to fresh reports, Foxconn is short 20,000 pairs of hands to handle Apple's production demands for the iPhone 5 (or whatever it's going to be called). This year alone, Foxconn has held more than 20 job fairs in order to churn out the  supposed 57 million iPhone 5 units demanded by Apple.

We've heard lots of rumours about the iPhone 5, including that it will have LTE, keep the small-ish screen size, and have a new micro-dock connector, but everything is up for conjecture for now, including crazy pseudo-textured touchscreens. At the rate Apple's going, it's expected that the next iPhone will do well, but one can hope that the next generation will at least have a slightly different form factor; we've been looking at the same iPhone casing for nearly two years now, so at least a little bit of cosmetic changes are due, if only for variety, right?

As far as the Foxconn employment surge goes, word has it that those signing on will enjoy the recent pay increase. Though I doubt those long hours documented by Nightline are going to change, I don't think the conditions for these new employees are going to be as bad as some people make them out to be.

Source: China News via 3G

In January, the radio show This American Life had hosted an a performer called Mike Daisey to talk about his experience talking to Chinese laborers who assemble iPads, iPhones, and other Apple products. Apparently Daisey had straight-out lied to TAL fact-checkers about many encounters, according to Rob Schmitz, a writer for Marketplace who investigated his claims.  Daisey had created a one-man show called "The Agony and the Ecstasy of Steve Jobs"  (PDF transcript) about his experiences. After being outed, he openly admitted that he's not a journalist and that he takes creative license with his work. Here's one excerpt that Daisey made up about one factory worker who had mangled his hand while on duty at Foxconn, and was trying out the iPad for the first time.

He's never actually seen one on, this thing that took his hand. I turn it on, unlock the screen, and pass it to him. He takes it. The icons flare into view, and he strokes the screen with his ruined hand, and the icons slide back and forth. And he says something to Cathy, and Cathy says, "he says it's a kind of magic."

This American Life has retracted the episode featuring Daisey, and issued a statement accepting responsibility for the whole mess. At least we can rest assured that this Daisey guy won't be particularly popular after this episode is done with.

Source: Marketplace, image credit

It looks like Apple has started selling iPhone 4 units from Foxconn's new Brazilian manufacturing plant, which has been up and running since late 2011. According to photos released by Portuguese news site Meio Bit, the iPhone 4 handsets in question appear to be the lower-end 8GB models, with stamps indicating they may only be just a few weeks old.

Gizmodo Brazil previously took a few photos showing Foxconn's Brazil's production. In addition to producing the iPhone 4 in Brazil, Foxconn plans to build 5 more production facilities in the surrounding areas to help with growing demand for the iPad among consumers.

Since Brazil also imposes very high duties on iPhones and iPads imported from China, it's conceivable that switching to local production could eventually eliminate those fees and bring iPhone and iPad pricing more in line with other regions, making the devices more accessible to Brazilian markets. No such price reductions are evident yet, however, so there may be other factors involved that require additional time to sort out.

Source: Meio Bit via MacRumors

The other night, ABC's Nightline got a peek into Foxconn's manufacturing facilities and shed some light on how the iPhone, iPad, and other Apple products are made. The main angle was to investigate the humanitarian conditions of the factories, and though there were certainly some interesting findings, there are a few details that Apple and Foxconn wanted to clarify. The first was regarding Zhou Xiao Ying, who deburred Apple logos from iPad casings. It was suggested that she goes through 6000 units a day, but it's actually half that.

“In manufacturing parlance this is called deburring. Her line processes 3,000 units per shift, with two shifts per day for a total of 6,000. A single operator at Ms. Zhou’s station would deburr 3,000 iPads in a shift.”

The other correction was about Foxconn not paying their employees enough to merit income tax. Foxconn's explanation on that particular was a little more roundabout.

“We have over 75 percent of the employees in the category of earning at least 2,200 RMB ($349/month) basic compensation standard. That means they are earning 13.75 RMB ($2.18) per hour. If they work overtime on the weekend, they will earn 27 RMB ($4.28) per hour. In order to reach 3500 to be taxable, they will have to work 47 OT hours to reach 3,500. If the overtime hours are in weekdays, they have to work around 63 hours per month to reach that level of salary to be taxable. Your statement is only true when applying to the entry-level workers while over 75 percent are already over the probation and earning more than 2,200 RMB basic salary.”

"The discussions began in April 2007 but stalled in March 2008. We then resumed them in April 2009 and decided to do a small pilot survey so that Apple could get an idea of how our tools might add value to their program. That pilot led to a second activity that I believe contributed to the decision to join the FLA at the end of 2011. I, of course, cannot speak for Apple but I do believe that the decision to join was probably taken some months before (and therefore well before) the New York Times articles."

Source: ABC

Nightline has aired their well publicized "exclusive look inside Apple's factory in China", which follows a month of media, environmental, and social scrutiny of the Chinese factory system. Apple allowed Nightline to film assembly of their products, which includes 141 steps to assemble an iPhone 4S, mostly by hand.

The assembly line workers were young; 17 or 18, with no one appearing to be over the age of 30. Working in 2 shifts, they can make 300,000 a day. An entire iPad takes 5 days and 325 pairs of hands, and they can churn out 10,000 an hour. One woman, a tired mother of 2, cleans 3,000 Apple logos every shift.

They get 2 one-hour meal breaks during a 12 hour shift, which they pay $0.70 for. If they eat fast, they can nap before their shift resumes. Dorm rooms are shared with 7 other workers. There's an internet cafe and soccer field where they play sports and practice Wushu (Chinese martial arts), and English and other classes. But Nighline makes it clear the workers are there to work, because opportunities outside Foxconn are fewer and pay even less.

Nightline implies that knowing how an iPhone or iPad 2 are made irrevocably alters your experience and enjoyment of the device -- the way knowing how a steak is made alters your experience and enjoyment of the meal. And that seeing Foxconn will make Apple customers "think different" about Apple. It's true that seeing things often has a greater impact than hearing or reading about them, and focusing and giving faces to individuals is more powerful than problems associated with faceless masses far away.

ABC did a good job divulging their connection to Apple -- they're owned by Disney, whose CEO sits on Apple's board, and whose single largest shareholder is the estate of Steve Jobs. They also point out that Foxconn works on projects for Intel, Nintendo, and Dell, among others.

We've shared some of our thoughts with you, both on the situation being a social, cultural, and developmental problem beyond Apple and on Apple's unique position and responsibility in the industry. Give Nightline's report a watch via the links below and let us know -- does it change how you feel about your Apple devices?

More: 5 min YouTube highlight, Full video (requires Flash, US only)

Nightline is going to be airing their big exposé on Foxconn tomorrow night, but the write-up of their visit to Foxconn is now available. Although Nightline reports that there are nets just about everywhere to catch anyone trying to commit suicide, depression is apparently not that common. The counseling center is sparsely used (most of the workers were simply tired from their 10-to-12-hour shifts), and despite the high profile of the suicides within recent memory, 18 attempts over the last couple of years actually isn't that many considering the Foxconn employs and houses a veritable city of over 230,000 within Shenzhen. A counselor at Foxconn explained why some of the suicides happened.

"There are many reasons. We had many scholars here doing research. Of course some (suicide) has to do with the management. But they had more to do with the new generation of migrant workers from the rural areas, their state of mind and how they cope with society. Also it's hard to make friends here."

"I expect them to put on a show for us. That's normal with every factory you go to, even if it's just the time that it takes you to get from the gate to the factory floor, there's always fifteen or twenty minutes of protocol to get in there. The special equipment comes out, they put the ear plugs in, they put the masks on, and they can transform a factory in twenty minutes, so we expect that."

This tour is a particularly big deal because Apple has traditionally never allowed press inside the factories where iPhone, iPads, and other Apple products are assembled, but an ongoing rash of bad press related to Foxconn has prompted  them to open up the doors, at least a little bit. Apple has got to be applauded for the unprecedented amount of effort they're putting into improving working conditions throughout their entire supply chain. One can only hope that other manufacturers start doing the same before the world starts to learn that it's not only iPhone factories that are harsh working environments.

Source: ABC

Responding to the ongoing controversy surrounding working conditions in Chinese factories, Apple has granted ABC News and their Nightline series exclusive access to go inside Foxconn and take a look around. Nightline new anchor Bill Weir has gone to Shenzhen China with film crew in tow to bring back the visual documentation of what exactly happens there.

"For years, Apple and Foxconn have been synonymous with monster profits and total secrecy so it was fascinating to wander the iPhone and iPod production lines, meet the people who build them and see how they live. Our cameras were rolling when thousands of hopeful applicants rushed the Foxconn gates and I spoke with dozens of line workers and a top executive about everything from hours and pay to the controversies over suicides at the plant and the infamous "jumper nets" that line the factories in Shenzhen. After this trip, I'll never see an Apple product the same way again" said Weir

The full broadcast will take place on February 21st, at 11:35 p.m., ET on the ABC Television Network but portions of it will be spread across the ABC networks line up.

Source: ABC News

Apple recently requested that the Fair Labor Association conduct audits of its assembly suppliers, with Foxconn being a focus due to recent media attention surrounding the working conditions there. The FLA has now indicated that general conditions within Foxconn's iPad and iPhone production facilities have better overall ratings than most other assembly vendors in the business.

“The facilities are first-class; the physical conditions are way, way above average of the norm,” said FLA president Auret van Heerden. He spent the past several days visiting Foxconn plants to prepare for the study. “I was very surprised when I walked onto the floor at Foxconn, how tranquil it is compared with a garment factory. So the problems are not the intensity and burnout and pressure-cooker environment you have in a garment factory. It’s more a function of monotony, of boredom, of alienation perhaps.”

Additional FLA staff members plan to visit more of these factories run by other Apple suppliers, like Pegatron. Whether you're of the opinion that Apple is taking the brunt of the negativity here when many other technology companies use the same vendors for their own products, or that Apple's position in the industry comes with added responsibility, it's at least good to know the FLA is taking quick action in their investigation and seeing mostly positive results thus far.

Apple CEO Tim Cook has previously gone on record stating that Apple "cares about every worker in their worldwide supply chain", and added emphasis on the matter during a speech held at a Goldman Sachs conference yesterday saying they will be a leader in improving working conditions regardless of the investigation's outcome.

Source: Reuters

Apple has voluntarily requested that the Fair Labor Association conduct special audits of its final assembly suppliers. Apple has moved very quickly following the damning report by the New York Times last month where workers’ rights and safety whilst working on the manufacture and assembly of Apple products was in question. The inspections will start today and will include Foxconn factories in Shenzen and Chengdu; both of which are in China.

“We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers,” said Tim Cook, Apple’s CEO. “The inspections now underway are unprecedented in the electronics industry, both in scale and scope, and we appreciate the FLA agreeing to take the unusual step of identifying the factories in their reports.”

The Fair Labor Association is a nonprofit organization which is dedicated to ending sweatshop conditions in factories worldwide. It will interview thousands of employees asking them questions about living conditions, health and safety, working hours and even communication with management.

Regardless of whether you believe Apple is being singled out as linkbait by the media, or whether they have responsibility and profile fitting their position, this is good news.

Source: Apple PR, Fair Labor Association; Image: Wikipedia

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.