Apple rumored to be expanding iPhone production to Foxconn subsidiary
Foxconn International Holdings, a subsidiary of Foxconn Technology and the largest cellphone manufacturer in the world, will reportedly take orders to build certain iPhone models in the company's first-ever Apple partnership.
Shares of Foxconn International Holdings (FIH) rose more than ten percent on Friday local China time, after a brokerage report claimed the company may start manufacturing an iteration of Apple's iPhone within the next few months, reports Reuters.
According to findings from Daiwa Capital Markets, FIH is likely to get iPhone orders "soon," despite not having any previous or current business dealings with Apple. The Foxconn Technology subsidiary is the world's largest contract maker of mobile phones, and builds products for Nokia, Huawei and ZTE, however the manufacturer has never been tapped to assemble Apple devices.
"Our industry research indicates that FIH is likely to start producing iPhones in late 2012 or early 2013," Daiwa's report said.
The news comes on the heels of a report claiming quality control issues have hampered Foxconn's ability to produce enough iPhone 5 units to keep up with expectedly massive demand.
It was said that Apple's decision to return to a metal back casing, instead of the "glass sandwich" design seen with the iPhone 4 and 4S, has caused issues with nicks and scratches appearing on brand new out-of-the-box units. Dubbed "scuffgate," the blemishes reportedly prompted Apple to instruct Foxconn to employ stricter quality control methods, which subsequently lower production yield rates.
It is unclear whether Friday's reported expansion to another iPhone producer stems from the purported manufacturing problems, though it is well known that stock of Apple's newest smartphone has been constrained since the product launched in September.
FIH declined to comment on the matter, but said it will release an official statement later today.
Shares of Foxconn International Holdings (FIH) rose more than ten percent on Friday local China time, after a brokerage report claimed the company may start manufacturing an iteration of Apple's iPhone within the next few months, reports Reuters.
According to findings from Daiwa Capital Markets, FIH is likely to get iPhone orders "soon," despite not having any previous or current business dealings with Apple. The Foxconn Technology subsidiary is the world's largest contract maker of mobile phones, and builds products for Nokia, Huawei and ZTE, however the manufacturer has never been tapped to assemble Apple devices.
"Our industry research indicates that FIH is likely to start producing iPhones in late 2012 or early 2013," Daiwa's report said.
The news comes on the heels of a report claiming quality control issues have hampered Foxconn's ability to produce enough iPhone 5 units to keep up with expectedly massive demand.
It was said that Apple's decision to return to a metal back casing, instead of the "glass sandwich" design seen with the iPhone 4 and 4S, has caused issues with nicks and scratches appearing on brand new out-of-the-box units. Dubbed "scuffgate," the blemishes reportedly prompted Apple to instruct Foxconn to employ stricter quality control methods, which subsequently lower production yield rates.
It is unclear whether Friday's reported expansion to another iPhone producer stems from the purported manufacturing problems, though it is well known that stock of Apple's newest smartphone has been constrained since the product launched in September.
FIH declined to comment on the matter, but said it will release an official statement later today.
Comments
KidnappingMoreChineseCitizensToWorkAsSlavesInTheirFactoriesgate.
...Like, YEARS earlier?
Didn't anyone at Apple actually look at whether the design could actually be mass produced? It looks like somebody slept through that class.
If the back is getting dinged and scratched up in assembly, what is it going to look like after it has been used a month?
Somebody goofed, big time, on this one.
Quote:
Originally Posted by RBR
...
If the back is getting dinged and scratched up in assembly, what is it going to look like after it has been used a month?
...
Why don't you buy an iPhone 5, use it for a month, then give us a full report?
You know, just so you'll have something to contribute.
Quote:
Originally Posted by SockRolid
Why don't you buy an iPhone 5, use it for a month, then give us a full report?
You know, just so you'll have something to contribute.
Are you really that dense?
If Apple can't get it off the assembly line without it getting scratched and dented, just how do you expect to use it without it getting messed up even more?
Think before you stick your foot in your mouth. Now that it is in your mouth, chew vigorously.
Quote:
Originally Posted by RBR
Are you really that dense?
If Apple can't get it off the assembly line without it getting scratched and dented, just how do you expect to use it without it getting messed up even more?
Think before you stick your foot in your mouth. Now that it is in your mouth, chew vigorously.
My one isn't "scratched and dented" although I did get a small nick from being in my pocket with my keys.
Nothing a quick dab with a Sharpie couldn't fix.
Quote:
Originally Posted by RBR
Are you really that dense?
If Apple can't get it off the assembly line without it getting scratched and dented, just how do you expect to use it without it getting messed up even more?
Think before you stick your foot in your mouth. Now that it is in your mouth, chew vigorously.
Do you know what percentage of IP5s have scratches or dents upon delivery or how easy or hard it is to scratch an IP5? Is this a widespread problem or an overblown non-issue?
This is just too bad, does not make Apple look good. Hope they get their act together.
Do you know what percentage of IP5s have scratches or dents upon delivery or how easy or hard it is to scratch an IP5? Is this a widespread problem or an overblown non-issue?
Mine is White & Silver 32GB and it is fine and immaculate and I AM FUSSY - to the extent I have 2 layers of screen protector (mirrored and normal, to cover the mirrored layer), I got back case and I put it in a pouch - the same thing I did with my 3GS and 4S. Thinking of getting the Zagg too like I did with my 3rd gen iPad. I say not widespread as it claimed to be.Maybe somebody could do a quick poll here but I doubt it will be a legit one since there are Fandroids in here as well. Internet don't lie they say.
Not so sure about that one. I am extremely long AAPL as a disclaimer, and I think AAPL should earn $10/share for the September quarter, and am hopeful that AAPL will guide to $15 for December. With September numbers, I can't see how AAPL can be below $700 in a rational world, or how they can't be close to $800 in January.
But... the politicians worry me. Not politicians of any party specifically, but collectively they don't seem to have the country/world's best interests in mind with their actions. This holds for the US in spades, but is also true of Germany, France, and the PIIGS. I start thinking about putting shiny metal under the mattress. (I don't think food would be as hygienic.)
This is all very likely to be slingshot action, but I'm not really sure who pulls the strings anymore and if they are going to eventually pull too hard.
Quote:
Originally Posted by RBR
Didn't anyone at Apple actually look at whether the design could actually be mass produced? It looks like somebody slept through that class.
If the back is getting dinged and scratched up in assembly, what is it going to look like after it has been used a month?
Somebody goofed, big time, on this one.
Quote:
Originally Posted by RBR
Are you really that dense?
If Apple can't get it off the assembly line without it getting scratched and dented, just how do you expect to use it without it getting messed up even more?
Think before you stick your foot in your mouth. Now that it is in your mouth, chew vigorously.
The foot is strictly in your mouth. If you know nothing about engineering and manufacturing, you should keep quiet on such topics. Or at least, you should use common sense. There are millions and millions of other products in the world made of the same materials. Should they all be taken off the shelves? Just how many iPhone 5 units are scuffed out of the box? Is it a higher percentage than what we see with other products? If it was made of plastic and not handled carelessly during assembly, would it be pristine?
You just might be one of the dumbest people here. And there are some seriously dumb ones.
Quote:
Originally Posted by RBR
If the back is getting dinged and scratched up in assembly, what is it going to look like after it has been used a month?
Somebody goofed, big time, on this one.
At first glance it would seem so, but a common use-case would be the person who immediately goes out and buys a nice case to personalize/protect their new iDevice. Some cases tend to add enough weight that makes one wish the device itself weighed less to begin with. High-grade aluminum with a black anodized finish fits the bill for this use case. Its lightweight and initial curb-appeal is enough until the new case goes on. In my experiences with black anodized aluminum, scuffs and imperfections where almost always present. Notwithstanding, as a product designer I would make the same decision given the same use-case. This material and finish combination delivers good results, especially if an external case will be used. There are however better choices if the device is meant to be unprotected long-term. In fact, I was always impressed with the glass back on the 4/4S, as it never scuffed [for me] when out of its case. Quite elegant, but who would know when its in its case. I strongly suspect Team Ive designed for the case-lover.
Good point as my previous 4,4s and now my 5 all have Otterbox defenders on them.
Quote:
Originally Posted by tskwara
At first glance it would seem so, but a common use-case would be the person who immediately goes out and buys a nice case to personalize/protect their new iDevice. Some cases tend to add enough weight that makes one wish the device itself weighed less to begin with. High-grade aluminum with a black anodized finish fits the bill for this use case. Its lightweight and initial curb-appeal is enough until the new case goes on. In my experiences with black anodized aluminum, scuffs and imperfections where almost always present. Notwithstanding, as a product designer I would make the same decision given the same use-case. This material and finish combination delivers good results, especially if an external case will be used. There are however better choices if the device is meant to be unprotected long-term. In fact, I was always impressed with the glass back on the 4/4S, as it never scuffed [for me] when out of its case. Quite elegant, but who would know when its in its case. I strongly suspect Team Ive designed for the case-lover.
Yep, 3Gs, 4, 4s all went to Gazelle "flawless" and got paid out that way. Every one of them cased from day 1. I loved the look of the uncased 4's but they were destined to just get stuck in my pocket with my coins and keys..... SO the lightweight 5, with a case feels much better in the pocket than the heavier and perhaps more robust surfaces: to the point "losing" it in a pocket and sitting on it has become an issue.
Go and multiple the problems