Apple's new iPad constrained by Retina display supply, 'sound labor practices'

Posted:
in iPad edited January 2014


Demand for Apple's new iPad remains strong, but production of the device has reportedly been limited by supply of Retina displays, as well as a new focus on employees at Foxconn that has resulted in worker hours being cut.



Analyst Shaw Wu with Sterne Agee aimed to quash some investor concern on Wednesday that demand for the new iPad is waning. That's not true, he said, as his checks within Apple's supply chain have found that the company continues to have strong interest in its latest touchscreen tablet.



Instead, he said, it's supply of the new high-resolution Retina display that has limited shipments of the latest iPad. He expects that situation to improve over the coming quarters, as additional production lines and suppliers are added.



Samsung is currently believed to be the primary supplier of Retina displays for the new iPad. Both LG and Sharp were said to have initially struggled in making the high-resolution screens for Apple, but recently began small-volume shipments.



Another factor in iPad supply, Wu said, has been the fact that Foxconn is now "conforming to more sound labor practices." Last month, following an independent audit by the Fair Labor Association, Apple's manufacturing partner Foxconn agreed to fix a number of violations that were discovered, including excess working times by its factory employees.



"This is in an effort to improve working conditions," Wu said. "From our understanding, the irony is that many employees prefer to work more overtime."











Some Foxconn workers publicly questioned last month why their hours were being cut after the review conducted by the FLA. Foxconn reduced employee working hours to 49 per week, including overtime, but the change will also result in smaller paychecks for workers.



Because iPad production has apparently been slowed by factors other than demand, Wu has opted to raise his estimates for sales in the current quarter. He now sees Apple having sold 12.3 million iPads in the already-concluded March quarter, up from his previous forecast of 11.5 million.



Wu also sees Apple selling a total of 63 million iPads in calendar 2012, up from an earlier prediction of 60 million. He has also raised Sterne Agee's price target for AAPL stock to $750, up from $740.



[ View article on AppleInsider ]

«134

Comments

  • Reply 1 of 64
    tallest skiltallest skil Posts: 42,848member
    Quote:

    "From our understanding, the irony is that many employees prefer to work more overtime."



    Well, yeah. Stupid labor organizations. It's the same as the people who think giving tractors to Africa is the right thing to do.
  • Reply 2 of 64
    eideardeideard Posts: 340member
    Quote:
    Originally Posted by AppleInsider View Post


    Some Foxconn workers last month why their hours were being cut after the review conducted by the FLA. Foxconn reduced employee working hours to 49 per week, including overtime, but the change will also result in smaller paychecks for workers.



    Gee -where were the ivory tower investigators when I worked in a shipyard in Louisiana that required a minimum of 54 hours/week?



    Oh, that's right. Who would expect paper whiners to get their hands dirty by getting near someplace where folks are actually working for a living? If they showed up inside a factory - it wasn't for a summer job; but, maybe a summer internship.
  • Reply 3 of 64
    jragostajragosta Posts: 10,473member
    This might be more interesting if the 'prediction' were coming from someone who had a history of getting things right. As it is, Wu has one of the worst records of any of the analysts who follow Apple.
  • Reply 4 of 64
    shardshard Posts: 96member
    Quote:
    Originally Posted by jragosta View Post


    This might be more interesting if the 'prediction' were coming from someone who had a history of getting things right. As it is, Wu has one of the worst records of any of the analysts who follow Apple.



    Wu, Munster and Piecyk, the three stooges.
  • Reply 5 of 64
    gatorguygatorguy Posts: 18,261member
    Where was any verified claim made that hours had already been cut?



    I'm sure some employees may be concerned about what will happen at some point in the future, and I've seen some articles about that, but where did FoxConn say the policy would be changed immediately and hours are already cut?



    The articles posted on it, even here at AI, say that FoxConn plans to put corrective policies in place by July of 2013, more than a year away.



    http://www.appleinsider.com/articles...fla_audit.html



    I think analyst Wu isn't paying close enough attention.
  • Reply 6 of 64
    jollypauljollypaul Posts: 328member
    Quote:
    Originally Posted by Eideard View Post


    ...ivory tower investigators ...paper whiners



    You are against workplace regulation. We get it.
  • Reply 7 of 64
    Quote:
    Originally Posted by Eideard View Post


    Gee -where were the ivory tower investigators when I worked in a shipyard in Louisiana that required a minimum of 54 hours/week?



    Oh, that's right. Who would expect paper whiners to get their hands dirty by getting near someplace where folks are actually working for a living? If they showed up inside a factory - it wasn't for a summer job; but, maybe a summer internship.



    I hear you. I've worked in similar or worse conditions than what people are crying over with the Foxconn workers.
  • Reply 8 of 64
    drdoppiodrdoppio Posts: 1,132member
    Quote:
    Originally Posted by AppleInsider View Post


    ...

    Another factor in iPad supply, Wu said, has been the fact that Foxconn is now "conforming to more sound labor practices." Last month, following an independent audit by the Fair Labor Association, Apple's manufacturing partner Foxconn agreed to fix a number of violations that were discovered, including excess working times by its factory employees.



    "This is in an effort to improve working conditions," Wu said. "From our understanding, the irony is that many employees prefer to work more overtime."

    ...



    I don't see why they don't just hire more people. They could give each new employee a biscuit and a cup of tea, guide them to a workstation and within half an hour have them start a 12-hour shift fitting glass screens into beveled frames. /s
  • Reply 9 of 64
    Quote:
    Originally Posted by JollyPaul View Post


    You are against workplace regulation. We get it.



    Where is all the righteous indignation for workers in the US who are similar situations?
  • Reply 10 of 64
    Quote:
    Originally Posted by JollyPaul View Post


    You are against workplace regulation. We get it.



    Nah, he's against stupid elitism.



    You sound like you shoud be familiar with that.
  • Reply 11 of 64
    Quote:
    Originally Posted by jragosta View Post


    This might be more interesting if the 'prediction' were coming from someone who had a history of getting things right. As it is, Wu has one of the worst records of any of the analysts who follow Apple.



    I know you don't care for Analysts in general, but is this guy particularly bad? Can you tag some of his terrible "predictions"?
  • Reply 12 of 64
    Nice! Shows that those elitists claiming to care about the poor and disenfranchised have no clue and don't even ask those who they are supposed to be protecting what is actually good for them.
  • Reply 13 of 64
    kpomkpom Posts: 601member
    Considering that the shipping times are back up to 1-2 weeks, and there is limited store availability (e.g here in NYC the Upper West Side store had the 32GB Verizon model in stock but none of the other stores do), I'd tend to agree that it is more likely an issue of supply than demand. Apple cranked up production to ensure a smooth rollout, but perhaps after that initial supply sold out demand caught up with supply again.
  • Reply 14 of 64
    auxioauxio Posts: 1,798member
    Just have employees who want to work nutso hours sign a form which says so. Done. Now can we end the mindless ideological rantings please?
  • Reply 15 of 64
    Quote:
    Originally Posted by auxio View Post


    Just have employees who want to work nutso hours sign a form which says so. Done. Now can we end the mindless ideological rantings please?



    Or just have western tree-huggers stop imposing their limited view of the world on to other cultures.
  • Reply 16 of 64
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by shard View Post


    Wu, Munster and Piecyk, the three stooges.



    Oh, there are way more stooges than that.



    How could you leave out Huberty? Moskowitz? Gauna? Wolf? Ghai?



    There's a veritable army of analysts posting nonsense.
  • Reply 17 of 64
    drdoppiodrdoppio Posts: 1,132member
    Quote:
    Originally Posted by auxio View Post


    Just have employees who want to work nutso hours sign a form which says so. Done.



    Brilliant! Have them sign it at the entrance to the workplace! Or, better yet, have them sign it together with their job contract. Such a simple solution, why didn't anyone think of this before!



    Quote:

    Now can we end the mindless ideological rantings please?



    Sure, you go first.
  • Reply 18 of 64
    boogabooga Posts: 1,071member
    Anything that puts China on the same footing as the US in terms of workplace regulation, living wages, safety, etc., is a good thing as it reduces the incentive to offshore manufacturing. I'd put the productivity of a US worker up against any other country in the world, except that they are willing to turn their environment into a cesspool and work their workers to death to make quotas and therefore they're cheaper. Put us on the same playing field and the jobs will come back to America.
  • Reply 19 of 64
    mrstepmrstep Posts: 446member
    Quote:
    Originally Posted by Tallest Skil View Post


    Well, yeah. Stupid labor organizations. It's the same as the people who think giving tractors to Africa is the right thing to do.



    Giving a tractor - it's a fantastic thing to do. Crap, did we forget fuel, parts, technicians, training, and land use practices to go with it?



    Anyway, my biggest concern here is that iPad supply constraints leave the door wide open for ChromeOS to take over.
  • Reply 20 of 64
    irnchrizirnchriz Posts: 1,542member
    When I was younger I worked in a call centre in Scotland. I did 2x 108 hour (yes, thats one hundred and eight) weeks back to back and when I handed in my time sheets they went ballistic. I felt fine but was limited to a maximum of 80 hours after that.



    If you are fit and healthy and not killing yourself then why cant you work as much as you are physically fit to do?



    These crybabies are just a bunch of communists who want to reduce unemployment by reducing hours and increasing job spaces.
Sign In or Register to comment.