Apple agrees to pay smaller suppliers faster as part of Obama’s new ‘SupplierPay’ program

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According to a report from The Wall Street Journal, President Barack Obama is set to announce a new program called “SupplierPay” to help boost small businesses, and Apple is one of the 26 companies listed as having already signed on.

The program intends to send money down the supply chain and help strengthen contractors and smaller businesses by giving them access to lower-cost capital and thereby opening up opportunities for hiring more workers. This, the White House hopes, will increase investments at the small business level as well. Read more

Apple will announce 4M more iPhone sales than supply chain data suggests, says Morgan Stanley

Photo: digitaltrends.com

Photo: digitaltrends.com

Predictions of disappointing Q2 iPhone sales could be unduly pessimistic, says Morgan Stanley’s Katy Huberty. She expects Apple to announce that it shipped 42M iPhones in the first quarter of the year (Apple’s fiscal Q2), rather than the 38M suggested by supply chain analysis, reports Business Insider. This would represent year-on-year growth of more than 4.5M handsets.

Huberty says that the supply chain may work in overdrive during the holiday quarter to generate extra product, and then ease back in the March quarter, thus giving an unreliable read out on sales.

Huberty bases her estimate on a method which sounds eccentric but has an excellent track-record …  Read more

Apple’s supplier responsibility report highlights progress on working conditions, boosts focus on environment

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Apple’s eighth annual Supplier Responsibility Progress Report highlights the progress made on reducing child labor and enforcing working hour limits, and shows a significant increase in the environmental standards Apple’s suppliers are expected to meet.

The number of cases of underage workers fell from 106 last year to 11 this year. Compliance with Apple’s requirement of a maximum working week of 60 hours hit 95 percent, with 97 percent meeting the requirement of at least one day off a week. Apple reported that the average working week of a supply chain employee was less than 50 hours …  Read more

Foxconn execs charged with taking bribes to award iPhone supply contracts

Photo: Thomson Reuters

Photo: Thomson Reuters

Several former execs at Foxconn have been charged with taking bribes from companies supplying the company with iPhone components, reports the WSJ.

Following a year of investigation, prosecutors said Thursday they have detained a former Foxconn general manager for allegedly taking kickbacks from supply chain partners. Prosecutors said three other former Foxconn employees were released on bail [after being charged] …  Read more

12.9-inch iPad rumor is back with launch date, early launch for larger size iPhone included

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Mockups: T3

Rumors of a larger iPad have been bouncing around since May (complete with the world’s silliest name). They gained credibility (minus the name) when reported by the WSJ in July, and our poll certainly suggests there would be demand for it, with 24 percent of 9to5Mac readers declaring that they love the idea. There have, however, so far been few supporting specifics.

Digitimes is not always the most credible of sources, but it is today suggesting that the 12.9-inch iPad will be manufactured by Quanta Computer, launched in October and targeted at the education market, citing its usual anonymous “supply chain sources” …  Read more

Apple’s challenges in ensuring fair treatment of workers in complex supply chains

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Bloomberg has a lengthy piece illustrating just how great a challenge it is for Apple and other multinational companies to ensure the fair treatment of workers in complex supply chains.

When one of Apple’s suppliers like Flextronics wins a new contract, it needs to take on additional workers – lots of them, and fast. Those workers are recruited through employment brokers, which are required to adhere to Apple’s rules. But many of them are brought in from other countries, like Malaysia and Nepal.

Alok Taparia, the managing director of Transworld Manpower, another of the four Nepalese brokers retained for that drive, says he was given clear instructions: Workers shouldn’t be charged; Flextronics would pay the brokers. But Taparia and the other Nepalese brokers say Flextronics demanded so many men so quickly that there was no way to do it without tapping the country’s network of subagents, stretching into Himalayan villages reachable only by foot. As Apple itself has described in reports on its supply chain, the subagents always charge…

Read more