Apple's new iPad constrained by Retina display supply, 'sound labor practices'
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 ]
Comments
"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.
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.
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.
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.
...ivory tower investigators ...paper whiners
You are against workplace regulation. We get it.
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.
...
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
You are against workplace regulation. We get it.
Where is all the righteous indignation for workers in the US who are similar situations?
You are against workplace regulation. We get it.
Nah, he's against stupid elitism.
You sound like you shoud be familiar with that.
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"?
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.
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.
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!
Now can we end the mindless ideological rantings please?
Sure, you go first.
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.
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.