Foxconn

326 'Foxconn' stories December 2010 - February 2016

Foxconn acquisition team “went berserk” when they learned of potential Sharp liabilities, deal in doubt

Ben Lovejoy Feb 26 2016 - 5:16 am PT

Plans for iPhone assembler Foxconn to acquire Sharp, allowing it to move into making displays for future devices, now appear in significant doubt. Initially reported in Japan as a done deal, the WSJ quickly reported that Foxconn was “delaying” signing – and the same source today reports that talks have broken down.

Sharp Corp on Friday scrambled to salvage a sale to Taiwanese electronics assembler Foxconn as its stock plunged and investors questioned whether the companies could restore trust to make their proposed marriage work after an 11th-hour breakdown in talks …

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Report: Apple manufacturer Foxconn acquires Sharp for $6.2 billion [U: Probably]

Chance Miller Feb 24 2016 - 6:33 pm PT

12 Comments

Update: The WSJ reports that the deal is not yet certain. Sharp may come with some potential financial risks, which Foxconn is evaluating before it actually signs the deal.

Foxconn Technology Group said Thursday it is delaying the signing of a definitive takeover agreement with Sharp Corp. due to new details that the Japanese electronics maker disclosed a day earlier.

Foxconn didn’t elaborate in its statement, but people familiar with the matter said that the Taiwanese iPhone assembler is putting the Sharp deal on hold after reviewing the Japanese firm’s future financial risk. The people said Foxconn received a list of about ¥350 billion yen worth of “contingent liabilities” from Sharp on Wednesday.

Contingent liabilities are costs that a company might face in the future, based on the outcome of lawsuits, accounting changes, supply contracts or other uncertainties.

Last month it was reported that Apple manufacturer Foxconn had bid $5.3 billion to acquire Japanese display maker Sharp, who has faced numerous financial and manufacturing difficulties over recent years. Now, Japanese news outlet Nikkei Asian Review reports that Sharp has accepted an offer from Taiwan’s Hon Hai Precision Industry, better known as Foxconn, for $6.2 billion.

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Digitimes: Wistron joining Foxconn for iPhone 5se production, dual suppliers for iPhone 7 models to lower risk

Benjamin Mayo Feb 16 2016 - 5:07 am PT

2 Comments

9to5Mac most recently reported Apple is planning to launch its new addition to the iPhone lineup on March 18th, a 4-inch ‘iPhone 5se’. Foxconn is leading production of the phone, as it does with most iPhone units. Digitimes is reporting that Apple is adding a new supplier to the mix to aid supply: Wistron.

Naturally, Wistron declined comment as 4-inch iPhone production is still a supposed secret. According to Digitimes, Apple is aiming to lower supply channel yield risks by contracting with multiple suppliers for iPhone models. This strategy will continue with iPhone 7 ….

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Fire last night at Foxconn’s main iPhone manufacturing plant “spanned several floors of the factory”

Ben Lovejoy Jan 25 2016 - 4:34 am PT

2 Comments

Update: A video from the People’s Daily does make it seem surprising that production would be unaffected.

[tweet https://twitter.com/PDChina/status/691315066776469504]

A fire broke out last night at Foxconn’s main iPhone manufacturing plant in Zhengzhou, China, with the WSJ noting that it spanned several floors of the factory. Foxconn confirmed reports, but said that there were no casualties and production was not affected.

Local authorities said they are investigating the cause of the fire. The fire began in the central air conditioning fan and ventilation ducts on the roof of one of Foxconn’s Zhengzhou plants, according to a statement on the website of the Zhengzhou Airport Economy Zone.

There have been previous fires and explosions at Foxconn factories, the most serious of which was at an iPad 2 production facility in 2011, when three workers were killed and fifteen injured. That incident also had a major impact on iPad production.

Photos: 163.com and Weibo user chengdu

Apple manufacturer Foxconn bids $5.3 billion to acquire display maker Sharp

Benjamin Mayo Jan 21 2016 - 4:39 am PT

4 Comments

iPhone manufacturer Foxconn has posted a $5.3 billion bid to buy Sharp, the Japanese display manufacturer who has faced financial difficulties in recent years. iPhone displays are currently manufactured by Sharp, Samsung and LG and assembled at Foxconn’s plant. A successful Sharp purchase puts Foxconn in the position to make iPhone display components, going beyond assembly.

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$12M govt subsidy to help Foxconn minimize layoffs fuels speculation of falling iPhone sales [Updated x2]

Ben Lovejoy Jan 6 2016 - 4:21 am PT

10 Comments

[Update 2: Reuters reports that Foxconn has published an earnings report showing a 20% fall in December revenues. However, the company says that its December earnings were “as expected,” and its full-year earnings are up 6.42% on the previous year, only marginally short of analyst expectations of 7%.]

[Update 1: StreetInsider reports that Foxconn has denied reports that workers started their lunar new year holiday early, and says that the government payout relates to ‘an insurance premium,’ but makes no reference to any response to the claim that it has been laying off workers.]

The WSJ is today suggesting that Apple is scaling back iPhone orders, noting that iPhone manufacturer Foxconn has been laying off workers and has received a $12.6M subsidy from the Chinese government through a program designed to minimize unemployment.

The piece notes that the subsidy is for Foxconn’s Zhengzhou plant, which is mostly devoted to iPhone production, and says that Apple has also reduced order forecasts for iPhone component makers.

Chinese iPhone factories had some idle capacity in the final two months of the calendar year, when they would typically be racing to chongliang, or “rush quantity,” for Apple, in factory-speak. Some workers at Foxconn’s Zhengzhou factory in inland China were let go on early holiday last month, one of the people involved in the supply said, although the typical new-year holiday season doesn’t start until February.

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Two key Apple suppliers fighting for control of Taiwanese chip company – billions at stake, say analysts

Ben Lovejoy Oct 14 2015 - 6:32 am PT

3 Comments

The WSJ reports that Foxconn and the world’s largest chip assembler, Advanced Semiconductor Engineering (ASE), are fighting for control of the number three company in the chip assembly business, SPIL. ASE assembles chips used in the Apple Watch, while SPIL last year started supplying chips for iPhones.

ASE had planned to take a controlling interest in SPIL in order to protect its market-leading position and remain one jump ahead of competitors. Key iPhone assembly company Foxconn, however, persuaded the company that it would do better by collaborating with the Chinese firm in order to win more of Apple’s business.

SPIL shareholders will vote on the proposed deal with Foxconn tomorrow. Although ASE had already bought some shares in the company, it did so too late to qualify for vote, so has instead sent a letter to other SPIL shareholders urging them to vote against the motion.

All three companies are competing for system-in-package (SiP) orders from Apple, which analysts say will be worth billions of dollars.

There is huge competition for Apple’s business among chip manufacturers and assemblers, with Apple reportedly playing off Samsung and TSMC against each other in order to squeeze out last-minute price cuts for the A9 chip. Samsung’s recent return to profit was attributed to the chips it supplies to Apple.

Tim Cook met with India’s Prime Minister, discussed Apple Pay, iPhone 6s, possible manufacturing

Ben Lovejoy Sep 28 2015 - 5:19 am PT

3 Comments

Shortly after Tim Cook met with the Chinese President, Apple’s CEO has met with Indian Prime Minister Narendra Modi, as expected. The Times of India reports that the two of them discussed the possibility of bringing Apple Pay to the country, and Prime Minister Modi invited Apple to set up a manufacturing base in the country.

Cook was said to have “responded positively” to the idea, though nothing more specific was announced. We’ve known for some time that Foxconn has plans to build multiple factories in India, but neither company has confirmed that these would be manufacturing products for Apple. Foxconn carries out contract manufacturing for a number of high-profile brands.

Apple does, however, have one strong incentive to manufacture iPhones in India …
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Foxconn reportedly interested in buying Sharp’s LCD business with an investment from Apple

Chance Miller Sep 23 2015 - 7:27 pm PT

1 Comment

According to a report from Nikkei Asian Review, Apple manufacturing partner Foxconn has proposed to purchase Sharp’s LCD business. The deal would see Foxconn hold a majority stake in the company, while Apple would also come on board as an investor. The exact breakdown of the partnership between Foxconn and Apple in purchasing Sharp’s LCD business is unclear at this point, but Apple already controls a major portion of the business…

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Tim Cook to meet Indian Prime Minister as India’s sales growth outstripping that of China

Ben Lovejoy Sep 16 2015 - 4:19 am PT

11 Comments

The Economic Times reports that Apple CEO Tim Cook is to meet Indian Prime Minister Narendra Modi later this month.

An Apple spokesperson confirmed that a meeting between its CEO Cook and PM Modi will take place. The Apple spokesperson, however, declined to comment on the topic of discussion.

It’s likely that Cook will want to discuss the possibility of official Apple Stores in the country. India does not permit manufacturer-owned stores unless a certain proportion of components are sourced within the country, forcing Apple to rely on third-party resellers …
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Supply chain reports back KGI timings of iPad Pro entering production in September

Ben Lovejoy Aug 20 2015 - 4:20 am PT

6 Comments

Supply chain sources cited by Digitimes back a KGI report that the iPad Pro is expected to begin production in September, ramping up into mass production from October. While Digitimes has a spotty track record, this report is more specific than many, providing details of display suppliers for the new device.

The device will enter production by the end of the third quarter and go into mass production in the fourth. Sharp will provide Open Cell LCD displays while [Foxconn subsidiary] GIS will provide GF touch panels.

Samsung Display and TPK will be secondary suppliers, with TPK responsible for touch modules and Samsung for displays as well as LCD assembly …

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Sketchy rumor: iPad Pro and last new iPad mini launch in Q4, iPad Air 3 in 2016

Cam Bunton Jul 15 2015 - 12:03 am PT

6 Comments

A rumor published this morning predicts that Apple will release it’s long-rumored 12.9-inch iPad Pro alongside the next generation iPad mini during the second half of the holiday season in Q4. Both will allegedly be assembled exclusively by Foxconn. That much we knew.

Speculation from Asian sources referenced by Economic Daily News suggests that Apple wants to ensure that nothing distracts from the focus on the larger iPad Pro, meaning the iPad Air 3 launch would be pushed back until 2016. In this seemingly unlikely scenario, when a Pro tablet is eventually launched, it’s more likely to fit a niche in the market rather than be the new, main device Cupertino is touting.

What’s more, the story goes as far as suggesting that Apple might discontinue the iPad mini range altogether after the 4th generation mini. This suggestion itself is highly speculative. We’re not sure even Apple would know if the iPad mini 4 is its last mini tablet, or not, at this point in time. That seems like a decision that would be made after seeing how the market reacts to the mini 4. Perhaps Apple is planning to build a hybrid Mini/iPod touch next year?

Saying that, with the iPhone 6 Plus on the market now, Apple has a large smartphone on the market which could cannibalize sales of any small tablets it sells. Especially when the presumed second generation 6 Plus hits store shelves.

With the iPad Pro, Apple is expected to launch a large tablet to bridge a gap which may, or may not, exist between tablets and laptops. Or more specifically, between iPad Air and MacBook. With the launch of multi-window multitasking in iOS 9, a larger screened tablet seems a no-brainer. iOS 9 itself also seemingly contains code pointing towards an iPad with a larger screen and higher resolution than the iPad Air currently on the market.

As always, treat any of this information as speculation and take the appropriate dosage of salt along with it. We’re doubtful of a lot being rumored from EDN.

Claimed iPhone 6S schematic matches our report of minimal exterior changes

Ben Lovejoy Jul 6 2015 - 7:19 am PT

31 Comments

Engadget Japan has shown a purported schematic of the iPhone 6S which it attributes to a reliable source in the Chinese supply chain. While the diagram does not appear to have originated from Apple, the design and marked dimensions are consistent with casing photos we obtained from a proven source.

We noted that any change in thickness was imperceptible, and the thickness marked on the schematic is 7.1mm – just 0.2mm thicker than the iPhone 6, and the exact same thickness as the iPhone 6 Plus. This also matches (within 0.03mm) that shown in a drawing we reported earlier …
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Debunk: iPhone 6S keynote date of Friday, September 11th extremely unlikely

Ben Lovejoy Jul 6 2015 - 5:29 am PT

3 Comments

A Chinese blog report that claims to reveal the date of the keynote announcing the iPhone 6S and 6S Plus is being picked up by some media outlets. According to the blog, sources inside the Foxconn supply chain have stated that the keynote will take place on Friday 11th September, with the phones going on sale a week later on the 18th.
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Foxconn is planning to build iPhones in India for the first time

Zac Hall Jun 11 2015 - 10:58 am PT

10 Comments

According to government officials, iPhone manufacturer Foxconn is planning to open operations including 10-12 factories and data centers by 2020 in India for the first time. Foxconn producing iPhones and iPads in India could result in lower prices on Apple’s hardware in the country where Apple’s hardware is sold at a price higher than many of its competitors.
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Strong iPhone 6 demand helps Foxconn achieve 56% rise in year-on-year earnings

Ben Lovejoy May 15 2015 - 6:56 am PT

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Record iPhone sales helped Apple’s lead manufacturer Foxconn to achieve 56% growth in year-on-year earnings, Apple representing almost half the company’s turnover. Foxconn achieved its highest first quarter profit growth in a decade, reports the WSJ.

The company also more than doubled its 2014 dividend from NT$1.80 per share to NT$3.80 (US$0.06 to 0.12).

Apple announced last month that it sold 61.1M iPhones in its fiscal Q2, demand for its larger-screened phones remaining extremely strong after the initial record start. Two analysts with strong track-records yesterday predicted that this success is likely to continue, forecasting sales of 51M iPhones in the current quarter.

Apple launches iPhone and iPad trade-in program in China Apple Stores

Mark Gurman Apr 1 2015 - 5:45 am PT

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Apple today officially launched a version of its Apple Store iPhone trade-in program for China, as noted on the individual store pages for China’s Apple Retail Stores.

As is the case in the United States and several other countries with Apple Stores, the program allows a user to bring in an older iPhone model and trade in that device for gift card credit toward the purchase of a new iPhone; the program will most likely not allow a customer to trade in an iPhone toward the purchase of an Apple Watch. But as contrasted with the U.S., France, United Kingdom, Germany, Canada and Italy, the new China program is limited to iPhones and iPads, and will not support non-Apple smartphones.

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Apple supplier Foxconn to cut workforce despite likely record iPhone sales [Update: Foxconn denies]

Ben Lovejoy Jan 27 2015 - 4:42 am PT

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Update: Foxconn has denied the Reuters report, stating that the claim is “completely inaccurate and totally without foundation.” The company told us that increased automation will result in reduced recruitment, but that there are no plans to reduce its workforce “now or anytime in the future.”

Foxconn, the lead assembler for iPhones, is planning to cut its workforce despite widespread expectations that Apple will today announce record sales of its smartphones, reports Reuters. It’s likely that the proposed reduction in staffing relates to Foxconn’s work for other manufacturers, who account for around 60% of the company’s revenues. Also, Apple sells a lot more stuff during the run up to the holidays so seasonal workers might be let go after demand is met.

Special assistant to the chairman and group spokesman Louis Woo did not specify a timeframe or target for the reduction, but noted that labor costs had more than doubled since 2010 […]

“We’ve basically stabilized (our workforce) in the last three years,” Woo said. When asked if the company plans to reduce overall headcount, he responded “yes”.

Foxconn experienced double-digit revenue growth from 2003 to 2012, but has seen that growth slip in the past couple of months as the PC market contracts and smartphone growth rates slow. The company has been trying to work its way up the Apple food-chain from assembly and low-cost components into more expensive parts like displays.

Latest rumor of OLED displays in iPhones inspired by report on Foxconn display factory

Ben Lovejoy Jan 8 2015 - 6:54 am PT

5 Comments

There are always rumors around that Apple is planning to switch from LCD to thinner, brighter, more power-efficient OLED displays in its iPhones. The latest is a report seemingly originating on Japanese newspaper Nikkan Kogyo Shimbun cited by GforGames via a Chinese site … So take it with the usual large pinch of salt.

Bloomberg reported back in November that Foxconn was building a new $2.6B display factory whose output would be exclusively devoted to Apple. The headline was quickly changed to remove the reference to Apple, though the piece still strongly hinted at Apple being the sole client. This latest report says that the factory in question will be making only OLED displays.

It’s worth noting that, even if the factory is indeed making displays only for Apple, and even if all those displays are indeed OLED ones, that still doesn’t necessarily mean you can expect OLED displays in next year’s iPhones. Apple has already announced that the Apple Watch will use OLED displays, so it’s possible that the company is simply diversifying its supply chain for these. LG is currently slated as the primary supplier of Apple Watch displays.

While OLED has a number of advantages over LCD displays, it is more expensive to manufacture, so a switch is not one that Apple would make without a careful cost-benefit analysis.

Foxconn is building a $2.6B display factory just for Apple [maybe – updated]

Ben Lovejoy Nov 20 2014 - 6:57 am PT

1 Comment

Update: Bloomberg has now removed Apple from the headline and has updated the piece to hint that Apple is the client without actually saying so.

Foxconn’s Taiwanese display subsidiary Innolux is investing $2.6B over the next two years in a new factory whose production will be exclusive to a single client, which Bloomberg reports to be Apple.

Equipment installation will commence next month with mass production of panels to start by the end of 2015 after an urgent request for exclusive capacity […]

Apple Inc., a Foxconn customer, has previously tapped suppliers for dedicated access to factories in a bid to avoid shortages that can crimp sales of its iPhones and iPads.

Shortages of the iPhone 6 Plus have been attributed to supply difficulties with the display, so a move to protect future display supplies would be a logical one for Apple, though Apple has mostly sourced its displays to date from Sharp, Japan Display, LG and Samsung.

Foxconn is Apple’s lead supplier for the iPhone, though secondary supplier Pegatron is believed to be playing a larger role than planned in a bid to help Apple keep pace with demand.

It was first suggested last month that Foxconn was hoping to make displays for the iPhone, along with other higher-end components – though this talk focused on China rather than Taiwan.

Possible Apple-Alibaba partnership could lead to greatly accelerated rollout of Apple Pay in China

Ben Lovejoy Nov 11 2014 - 4:19 am PT

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The potential partnership between Apple and Chinese ecommerce giant Alibaba could facilitate a far more rapid rollout of Apple Pay in the country than if Apple goes it alone, suggests a piece in the WSJ. Tim Cook first revealed that he was in talks with the company at the WSJ Digital conference last month.

One possible scenario is for Alibaba’s financial affiliate, which owns the Alipay electronic-payment business in China, to provide back-end services for Apple’s Apple Pay payment system, allowing iPhone users to pay with Apple Pay using the money from their Alipay accounts, Mr. Tsai said.

Such an arrangement would be significant for two reasons …
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Apple assembler Pegatron reportedly ramping up iPhone 6 production, adding iPhone 6 Plus to meet demand

Zac Hall Nov 10 2014 - 9:41 am PT

4 Comments

Although the iPhone 6 and iPhone 6 Plus launched almost two months ago, availability for Apple’s flagship smartphones can still be hit or miss even from Apple’s own stores. Recent waves of international launches certainly haven’t helped supply meet demand, but Nikkei Asian Review reports that electronics manufacturer Pegatron is “expanding production capacity to handle strong global demand for the iPhone 6.“
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Tim Cook talks Apple Pay, Apple Watch and security on final day in China

Ben Lovejoy Oct 24 2014 - 5:36 am PT

4 Comments

On the final day of Tim Cook’s four-day visit to China, he told state news agency Xinhuanet that Apple Pay was top of the list of things the company wanted to take to China.

“China is a really key market for us,” said the CEO. “Everything we do, we are going to work it here. Apple Pay is on the top of the list.”

Cook said that Apple would be working to understand the steps needed to bring the new service to China before meeting with local carriers, banks and merchants …

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Foxconn hoping to make future iPhone screens, get more of the Apple pie

Ben Lovejoy Oct 23 2014 - 4:48 am PT

5 Comments

iPhone assembler Foxconn is apparently hoping to move beyond its relatively low-margin work into more profitable high-end component manufacturing in order to take a bigger slice of revenue from Apple, reports the WSJ.

Apple Inc.’s major assembler Foxconn is in preliminary discussions with a provincial government in northern China for an investment in a new factory that would make high-end screens for iPhones and other mobile devices, people familiar with the talks say.

Foxconn already manufactures some iPhone components, but currently only low-margin ones like metal casings and cables …
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