Pegatron Stories May 2

AAPL: 147.51

0.93

iPhone factory worker describes facial recognition checks & other security measures

NYU Grad student Dejian Zeng last month gave us an inside view of the life of an iPhone factory worker when he took a summer job at Pegatron, and now Business Insider has asked him about the security measures taken to try to guard against leaks …

Pegatron Stories April 12

AAPL: 141.80

0.17

You might expect an NYU student to seek out a summer internship doing something more interesting than spending 12 hours a day inserting a single screw into an endless production line of iPhones, but Dejian Zeng did exactly that for his summer project.

He wanted to find out what life was like for workers in an iPhone factory, so spent six weeks as a Pegatron worker in a facility on the outskirts of Shanghai. He reported back on everything from the sleeping patterns to the need to download apps to qualify for free Wi-Fi access in the dorms …

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Pegatron Stories July 5, 2016

AAPL: 94.99

-0.90

Digitimes report claims that Apple suppliers are facing pressure from Apple to reduce costs, with major players like Foxconn and Pegatron affected. Apple is in some cases adding suppliers into the mix to help drive down pricing. It was recently reported that Sharp was gearing up to compete with Samsung and LG for the OLED displays Apple is expected to use for future iPhones.

Currently, Largan is facing strong competition from Japan-based Kantatsu over camera module orders, while Foxconn and Pegatron are seeing Apple adding new ODM partners such as Wistron for the production of its new iPhone.

Taiwan’s printed circuit board (PCB) players are also competing aggressively over Apple’s orders by cutting prices.

A major British supplier has also just posted the largest loss in its history …

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Pegatron Stories May 12, 2016

AAPL: 90.34

-2.17

iPhone decline hits Apple suppliers, say they see no upside in immediate sight

Apple’s decline in iPhone sales is unsurprisingly having a knock-on effect on its key suppliers, with the WSJ reporting that Foxconn, Pegatron, Sharp, Japan Display and Sony have all reported falling profits or losses as a result.

Pegatron Stories April 25, 2016

AAPL: 105.08

-0.60

Over the weekend, Bloomberg posted an exclusive report of Pegatron’s iPhone plant in China. Although Foxconn is Apple’s primary assembler, Apple has moved more of its iPhone assembly contracts to Pegatron in recent years to diversify its supply chain.

The Bloomberg report describes how the factory is managing its workforce, tracking hours via automated systems, and tackling labor issues like overtime. This is the first time Pegatron has allowed official press to photograph the insides of the factory, where 50,000 people work on the floor.

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Pegatron Stories October 22, 2015

AAPL: 115.50

1.74

Majority of iPhone/iPad workers at Pegatron’s Shanghai factory exceed 60-hour work limit, claims China Labor Watch

China Labor Watch says that an undercover investigation at a Pegatron factory manufacturing iPhones and iPads found that 58% of workers there were working in excess of 60 hours a week – the limit laid down by Apple for its suppliers. It also said that overtime, which is supposed to be voluntary, is effectively mandatory, reports CNET.

The report claimed that the standard shift was nine hours, but that – between September and December last year – staff worked an additional minimum of 20 hours of overtime each week, usually split up between an extra two hours each week day and one 10-hour shift on Saturdays. […] This overtime was essentially a requirement, according to the investigator, who claimed to be told by a trainer that working eight-hour shifts five days a week “does not conform to our hiring requirements.”

The report says that many workers in any case said that significant overtime was necessary to meet their living expenses, with wages at the local minimum wage of around $1.85 per hour.

The report also alleges that Pegatron falsifies documents shown to Apple to give the appearance of complying with supplier audit requirements while failing to do so in reality.

Despite providing only about eight hours of pre-job safety training—where Chinese law requires 24 hours—Pegatron forces each new worker to sign a form that “certifies” that she has undergone 20 hours of safety training. A worker also must sign a trainer’s name on the form. The factory has workers quickly copy answers to the safety information quiz. These falsified forms are the types of documentation that are provided to Apple in their audits.

The report notes some improvements since 2013, with partial improvements in sick leave and the ending of claimed discriminatory hiring practices. CNET says that neither Apple nor Pegatron responded to requests for comments on the report.

It’s not the first time that China Labor Watch has criticized working conditions in factories run by Apple’s suppliers. A report last year on another Apple supplier detailed claims of 22 violations ranging from hiring practices to safety concerns.

A BBC documentary based on an undercover investigation at another Pegatron factory prompted Tim Cook to say he was “deeply offended” by the claims and the show’s failure to include facts and perspectives provided by Apple.

Apple publishes an annual Supplier Responsibility Progress Report in which it details the issues it faces in its supply chain and the steps taken to address these.

Photo: AP Photo/Kin Cheung

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