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Uni-body casing manufacturer shutdown may affect Mac notebook shipments

post #1 of 32
10/17/11 at 5:03pm
Thread Starter 
A Chinese factory responsible for manufacturing the metal housings for Apple's uni-body laptop lineup has been shutdown due to "strange odors" emanating from the plant, potentially causing a 40% decrease in shipments for November.

Catcher Technology, a Taiwanese company with factories in Eastern China, was ordered on Sunday to shutdown a factory that produces 60% of Apple's uni-body enclosures for the MacBook Pro and MacBook Air lines, according to the Financial Times. The plant also produces casings for Apple's iMac and products for other notebook makers such as Acer, Dell, Lenovo and Sony.

The president of Catcher Technology, Allen Horng, reported that total shipments would fall 20% in October, adding that November could see a 40% drop if the local government doesn't clear the plant for operation by the end of the month.

"Shipments to our customers will inevitably be affected," Horng said in a press conference Monday. "We already asked them to make adjustments to their (casings) procurement."

It is unclear whether the plant shutdown will affect shipments of a rumored MacBook Pro refresh, expected to be announced later this month. Notebooks accounted for a majority of Apple's Mac sales in the quarter ending in June.

Analysts expect another record breaking quarter, bolstered by strengthened MacBook Air sales, when the company announces its quarterly earnings on Tuesday.


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post #2 of 32
10/17/11 at 5:25pm
As unfortunate as this is for Mac fans, I suppose it's better safe than sorry. If an explosion like the one at Foxconn happened again, and they had ignored strange smells, people would have blamed them for not taking the proper precautions. Good to see these plants valuing safety.

Having said that, I hope they can get the plant back online soon and get those new MBPs out! Hopefully USB 3.0 is in the works due to the new Intel chips?
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post #3 of 32
10/17/11 at 5:26pm
Would not be surprised to learn that Apple commands available capacity first to meet their supply needs. I wouldn't assume equal distribution of capacity loss.
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post #4 of 32
10/17/11 at 5:29pm
I'm interested in getting more details as it evolves. Are there chemicals being used in the milling of the aluminum blocks? Perhaps the lubricants used to cool the milling bits are getting out of hand over there?

I say it's a good call by the Chinese government for once. If that company is violating something, get it resolved and get environmentally responsible too. Not cool if they were trying to bypass regulations.
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post #5 of 32
10/17/11 at 5:38pm
As soon as the latest Update to Macbook Pro Line is out, I'll get my MBP 17', and iPhone 4S!!! I'll max both out!

But I agree - safety can not be ignored!

Having watched the latest 10/4/11 iPhone 4S Event, I yet again got a very nice feeling of stability! Apple is a very steady, All Pro "ship", in High End Pro Hands, so I am sure they are handling this, and everything else very well, cause they are pros!
MBP 17', Antiglare - 2.5GHz Quad-core Intel Core i7 -8GB 1333MHz DDR3 SDRAM = 2x4GB; 512GB SSD - SuperDrive 8x - Apple Thunderbolt Display 27'
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MBP 17', Antiglare - 2.5GHz Quad-core Intel Core i7 -8GB 1333MHz DDR3 SDRAM = 2x4GB; 512GB SSD - SuperDrive 8x - Apple Thunderbolt Display 27'
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post #6 of 32
10/17/11 at 5:41pm
If this was a company owned by one of the Chinese generals, or some connected hack, this would have never happened. But being owned by a foreign entity, and twiwanese at that, I am certain that all safety regulations must be followed, to the letter and beyond. That's how capitalism works there.
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post #7 of 32
10/17/11 at 5:41pm
Quote:
Originally Posted by sflocal View Post

I'm interested in getting more details as it evolves. Are there chemicals being used in the milling of the aluminum blocks? Perhaps the lubricants used to cool the milling bits are getting out of hand over there?

I say it's a good call by the Chinese government for once. If that company is violating something, get it resolved and get environmentally responsible too. Not cool if they were trying to bypass regulations.

I doubt it is the machining, though it's possible the coolant can be a problem, it's not likely. I looked up the company, they offer a lot of coatings, painting and chemical treatments. Any one of those can be a problem, and sometimes vapors from different processes can combine into something worse.
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post #8 of 32
10/17/11 at 5:44pm
"strange odors"

No Peter Griffin fart jokes? And I thought I knew you people.
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post #9 of 32
10/17/11 at 5:52pm
"Strange odors" emanating from a plant that makes parts for Apple? Hmmm.

Most likely, the odors are due to Fandroids sneaking around and spying on the plant. Fandroids are ALWAYS looking to save a buck, and buying a 4 dollar deodorant stick is probably too much to expect from these kinds of people.
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post #10 of 32
10/17/11 at 5:52pm
I would rather have no Mac at all, than one emitting strange odors.

nagromme
Your Mac, PC or PS3 could help cure cancer!

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nagromme
Your Mac, PC or PS3 could help cure cancer!

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post #11 of 32
10/17/11 at 6:41pm
1) It's refreshing to hear about a factory issue in China that doesn't include a body count.

2) I'd think Apple has other companies lined up that would love to get their business so I don't expect to see any major slowdown in sales.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #12 of 32
10/17/11 at 6:43pm
Maybe a Taco Bell opened near the factory recently, most of the workers wanted to get a taste of it... Why is manufacturing like this not done here in the US when we need jobs here. Once these cheap labor wake up to the fact they are underpaid, maybe we'll see manufacturing come back state side.
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post #13 of 32
10/17/11 at 7:13pm
Just the latest attempt to drive the stock price down....
Dr
Pepper
Crew
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Dr
Pepper
Crew
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post #14 of 32
10/17/11 at 7:16pm
Quote:
Originally Posted by marokero View Post

Maybe a Taco Bell opened near the factory recently, most of the workers wanted to get a taste of it... Why is manufacturing like this not done here in the US when we need jobs here. Once these cheap labor wake up to the fact they are underpaid, maybe we'll see manufacturing come back state side.

not likely; it will go to the next area of cheap labor, most likely places like india, vietnam, maybe parts of south america.

Eventually we will run out of cheap labor, but imo, that's so far out that its meaningless to try to predict what the world will look like by then.
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post #15 of 32
10/17/11 at 7:42pm
Quote:
Originally Posted by solipsism View Post

1) It's refreshing to hear about a factory issue in China that doesn't a body count.

2) I'd think Apple has other companies lined up that would love to get their business so I don't expect to see any major slowdown in sales.

Don't speak to soon dude. It could be one of the workers that fell into a hole and no-one noticed.
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post #16 of 32
10/17/11 at 7:56pm
Tim Cook to VP of Operations Jeff WIlliams. "Oh thats not good" "You still here?". VP of operations. "Im on my way to the Air Port now sir."
An Apple man since 1977
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An Apple man since 1977
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post #17 of 32
10/17/11 at 8:03pm
Ten bucks says they find dead bodies....

No, but seriously... it seems plausible.
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post #18 of 32
10/17/11 at 8:22pm
.....
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post #19 of 32
10/17/11 at 8:23pm
And this is why God invented Tim
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post #20 of 32
10/17/11 at 9:02pm
.....
Dr
Pepper
Crew
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Dr
Pepper
Crew
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post #21 of 32
10/17/11 at 9:14pm
As much as I'd like to get involved with the possible political discussion, experience has taught me that political discussions on the Internet are just a downhill trip, so those posts are gone. They were already off topic anyway.
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post #22 of 32
10/17/11 at 9:46pm
Just how strange does an odour have to be for it to cause a chinese factory to get shut down?

Maybe someone opened some surströmming.
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post #23 of 32
10/17/11 at 10:21pm
Quote:
Originally Posted by marokero View Post

Maybe a Taco Bell opened near the factory recently, most of the workers wanted to get a taste of it... Why is manufacturing like this not done here in the US when we need jobs here. Once these cheap labor wake up to the fact they are underpaid, maybe we'll see manufacturing come back state side.

These jobs will not be moved to the US. If China's wages become too high, these jobs will be moved instead to other countries like India or Vietnam. This process repeats itself until the whole world becomes much more developed. Unless something bad happens to the US economy that causes the average wage to fall down to India's level, these jobs will not be moved to the US.

Apple sales are increasing so rapidly worldwide that the US cannot even provide sufficient workers, unless they hire skilled worker off someone else.
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post #24 of 32
10/18/11 at 12:27am
Where is the original link of the news? Sure something stinks! It is called timing. The company is releasing their earnings after market closes! It is those short traders trying to cover before the record quarter once again!
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post #25 of 32
10/18/11 at 4:29am
Quote:
Originally Posted by solipsism View Post

1) It's refreshing to hear about a factory issue in China that doesn't include a body count.

2) I'd think Apple has other companies lined up that would love to get their business so I don't expect to see any major slowdown in sales.

Like it never happens here.
Quote:
4,547 workers were killed on the job in 2010 [BLS 2010 preliminary workplace fatality data] (3.5 per 100,000 full–time equivalent workers) – more than 87 a week or more than 12 deaths every day. (This is a slight decline from the 4,551, fatal work injuries in 2009)

682 Hispanic or Latino workers were killed from work–related injuries in 2010 – more than 13 deaths a week

"Every day in America, 12 people go to work and never come home. Every year in America, 3.3 million people suffer a workplace injury from which they may never recover. These are preventable tragedies that disable our workers, devastate our families, and damage our economy." – Secretary of Labor Hilda Solis, April 28, 2011 blog

"A March 2010 Liberty Mutual Insurance company report showed that the most disabling injuries (those involving six or more days away from work) cost American employers more than $53 billion a year – over $1 billion a week - in workers' compensation costs alone." – OSHA Assistant Secretary David Michaels, April 14, 2011

http://www.osha.gov/oshstats/commonstats.html

VS. China
Quote:
Industrial accident and death rates in China are among the highest in the world, killing more than 100,000 people every year. The industrial death rate in 3.85 per 100,000 in 2005. More than 127, 000 people are killed in work-related accidents in 2005, down from more than 140,000 in 2002, and down from 109,000 in 2000. That works out to 380 deaths per day.

http://factsanddetails.com/china.php...subcatid=60#02

And it wasn't that long ago in the US
Quote:
The dangers of work are usually measured by the number of injuries or fatalities occurring to a group of workers, usually over a period of one year. Over the past century such measures reveal a striking improvement in the safety of work in all the advanced countries. In part this has been the result of the gradual shift of jobs from relatively dangerous goods production such as farming, fishing, logging, mining, and manufacturing into such comparatively safe work as retail trade and services. But even the dangerous trades are now far safer than they were in 1900. To take but one example, mining today remains a comparatively risky activity. Its annual fatality rate is about nine for every one hundred thousand miners employed. A century ago in 1900 about three hundred out of every one hundred thousand miners were killed on the job each year.

http://eh.net/encyclopedia/article/a...y.workplace.us

Accidental death is sad in any case, no matter where. Except perhaps, if it were to happen on Wall Street.
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post #26 of 32
10/18/11 at 5:27am
Of all the processes Apple is involved in that could be moved to the US I would have thought milling unibodies would me the most possible. It is surely a process that could be virtually 100% done by robots ... with Siri in charge?

Of course the shells are probably needed there in China for assembly thus making my point moot Then again assembly could also be done by robots I'd have thought ... Come on Apple think different and have Macs making Macs and iPads and iPhones etc. here in the USA. It might not create many jobs but robots need work too! Seriously, I am waiting for the next Apple big thing to be in robotics ....
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #27 of 32
10/18/11 at 5:32am
Quote:
Originally Posted by Onhka View Post

Like it never happens here.


VS. China


And it wasn't that long ago in the US


Accidental death is sad in any case, no matter where. Except perhaps, if it were to happen on Wall Street.

Some shouldn't be accidental on Wall Street!
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #28 of 32
10/18/11 at 5:35am
Quote:
Originally Posted by radster360 View Post

Where is the original link of the news? Sure something stinks! It is called timing. The company is releasing their earnings after market closes! It is those short traders trying to cover before the record quarter once again!

I am glad I have always been in AAPL for the long haul and don't even have to read about these shenanigans (even if this isn't one plenty of such stories are I agree). I bought in the 30's and 70's for the most part and intend to sell when they hit 1,000
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #29 of 32
10/18/11 at 6:55am
Quote:
Originally Posted by 801 View Post

If this was a company owned by one of the Chinese generals, or some connected hack, this would have never happened. But being owned by a foreign entity, and twiwanese at that, I am certain that all safety regulations must be followed, to the letter and beyond. That's how capitalism works there.

BS. Foreign companies get away with just as much if not more than local companies. Just check out how long it took for ConocoPhillips to even stop production on the oil platform that started leaking oil in the early summer, and we still don't have a definitive confirmation that the leak has stopped. As for fines, compensations, or at least appologies, none whatsoever has been announced.
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post #30 of 32
10/18/11 at 7:31am
Quote:
Originally Posted by digitalclips View Post

I am glad I have always been in AAPL for the long haul and don't even have to read about these shenanigans (even if this isn't one plenty of such stories are I agree). I bought in the 30's and 70's for the most part and intend to sell when they hit 1,000

I am with you also. Though I didn't buy mine as low as you did, but will cash in 3rd at 600 than at 800 and last 3rd at 1000
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post #31 of 32
10/18/11 at 8:04am
Quote:
Originally Posted by marokero View Post

Maybe a Taco Bell opened near the factory recently, most of the workers wanted to get a taste of it... Why is manufacturing like this not done here in the US when we need jobs here. Once these cheap labor wake up to the fact they are underpaid, maybe we'll see manufacturing come back state side.

It's never going to come back. Chinese factory workers make about $130 a month. Let's say their wages double to $260 a month. At an average minimum wage (which you can't live on in most parts of the U.S.) a U.S. worker makes about $1440 a month. In addition, employers must pay social security and Medicare for the employee adding about another $86. So even if the employer doesn't provide health care or any other benefits we're talking about 6x the wages even if the wages of Chinese workers are doubled.

And even if Chinese costs increase beyond that, manufacturing would simply move to India, Vietnam or Africa.
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post #32 of 32
10/20/11 at 7:05am
deleted
"Surely it is possible to love Apple products and still respect what others have achieved?" - Stelligent
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"Surely it is possible to love Apple products and still respect what others have achieved?" - Stelligent
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