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Foxconn establishes its North American headquarters in Milwaukee
Foxconn is extending its fledgling American footprint beyond its planned display factory in Wisconsin. The tech manufacturing behemoth is establishing its North American headquarters in Milwaukee, 30 miles north of the upcoming factory. It's buying a seven-story building from Northwestern Mutual and expects 500 people to work at the facility, which will include an innovation hub to help startups create apps using its display tech. That's a drop in the bucket compared to the intend 13,000 jobs at the screen facility, but it's symbolic of the company's US presence -- it's not just dabbling this time around.
Apple will build an R&D center in China's Silicon Valley
Apple needs China a little more than China needs Apple, which is why the company is bending over backwards to show some love to the Middle Kingdom. VentureBeat is reporting that the iPhone maker will open a research and development center in Shenzen, the Silicon Valley of Hardware. The site quotes Apple spokesperson Josh Rosenstock saying that the facility will help Apple's engineers work "even more closely and collaboratively with our manufacturing partners." Given that Shenzen is home to Foxconn City, the site where several Apple products are assembled, it makes sense that Apple would push for an official presence in the region.
Nokia will return to mobile with Android phones and tablets
The Nokia brand will return to the smartphone market. Just as Microsoft announced it's offloading Nokia's old feature phone business to a Foxconn subsidiary and a mysterious Finnish company called HMD Global Oy, Nokia has revealed that HMD is also acquiring the relevant rights to use the Nokia name on smartphones and and tablets for the next ten years. That means we'll start seeing "Nokia-branded" phones and tablets very soon. And they'll be running Android.
Foxconn still not in compliance with all local labor laws, but it's getting better
Remember when Apple and Foxconn pledged to improve working conditions, increase wages and limit work weeks to 60 hours? Turns out they're still working on that. According to a recent investigation by China's Fair Labor Association, Hon Hai Precision (Foxconn's official name) is "not in compliance" with laws limiting overtime to 36 hours a month. Even so, the company has made significant progress: according to the FLA, Foxconn has completed 356 of the 360 items it agreed to when it promised to improve working conditions. In fact, the company seems to be taking the audit as a compliment. "The results of the report demonstrate substantial overall progress by our company in carrying out the 15-month remedial program in many areas," Foxconn officials said. "However, we recognize that there is more to be done and we must continue to sustain this progress and further enhance our operations." Apple followed up the company's optimistic response with its own statement, noting that the average work week at all of its suppliers was 53 hours, well under the 60 hour limit. The company also made progress by improving facilities, building more exits and adding more toilets. There's still work to do, but both companies have promised to do everything they can to resolve the remaining issues.
WSJ reports Apple cutting orders for the iPhone 5c, invites you to speculate
Apple broke routine when it launched not one, but two new iPhones at its last event. Analysts, media and consumers alike have been quick to offer opinion on how that's working out for the firm. Not least because -- despite being pitched as a cheaper alternative -- Cupertino still priced the iPhone 5c in the upper reaches of many people's budgets. So, fresh reports from The Wall Street Journal today, then, that Pegatron and Hon Hai (the two firms that assemble the iPhone 5c) have been told to cut back on production has triggered new waves of speculation. And speculation it is. The WSJ's sources suggest that orders will be cut by between 20 and 30 percent, which analysts are quick to confirm points to a slump in demand. What's not mentioned is that the same thing happened with the iPhone 5 not long after its release. Not to mention the potential impact of high demand for the iPhone 5s in its gold variant (and iPhone 5s generally, as the WSJ also notes). Or that Apple might very well have just got their stock right for the first wave of orders -- including inventory for the next round of countries to get it. We'll perhaps get a better idea from the firm's forthcoming financial reports, but for now we're left navigating passage through the bandwagons.
Chinese students allegedly forced to build PS4s at Foxconn for school credit
Not all internships are as easy as making coffee in exchange for a glowing reference. In fact, according to Chinese media, over 1,000 students from the Xi'an Institute of Technology have been working on the PlayStation 4 production line at Foxconn as part of a work experience partnership. Apparently, the interns are treated much like employees, so apart from the work's questionable relevance to future careers, they get paid and have something for the CV. All is not quite as above board as it sounds, though, for Foxconn has admitted to Quartz that some students were designated night shifts and overtime in disagreement with internship protocol. Foxconn says it's taken steps to make sure it won't happen again, and was keen to highlight the voluntary nature of intern participation. However, reports claim the Xi'an Institute of Technology is withholding course credits necessary for graduation, thereby forcing students to pull drone duty and help address the rabid demand for Sony's next-gen console. While we're surprised to hear that an educational establishment is allegedly party to such a scheme, Foxconn has always had a penchant for controversial working arrangements.
7-Eleven strikes deal with Hon Hai to sell tablets and notebooks in Taiwan
The stars have aligned in such a way that two of our favorite, yet disparate interests are crossing paths: gadgets and Slurpees. Hon Hai Precision Industry (better known as Foxconn's parent company) has struck a deal with 7-Eleven, and will manufacture slates for the latter to sell in Taiwan. Details are slim on the 7-inch (7.11-inch?) tablet, but it's now up for pre-order, and the pair hope to give 3,000 units new homes in the first three months of sales. As absurd as it sounds, this isn't the first partnership between the unlikely couple. In June, a similar deal resulted in 7-Eleven-branded TVs (in 40-, 60- and 70-inch flavors), and over 15,000 have been sold since. Now, a 50-inch set has been added to the mix, and between five and ten new products -- which include smartphones and laptops -- will be available by years' end. Rather than crowding the inside of shops with the gadgets, the televisions were up for order through the convenience store's 7net website as well as brick and mortar locations, and it appears the other hardware will follow suit. We don't expect the gas station to dabble in electronics stateside, so you might as well make the most of a trip to Taiwan and pick up a Honey Lemon Slurpee while you're at it. [Image credit: Nicky Fernandes, Flickr]
Robust iPhone sales bolster Foxconn bottom line
Apple's controversial, but improved, manufacturing partner Foxconn had a strong second quarter thanks to iPhone sales surpassing expectations for the period. Net profits were up 41 percent over the June quarter in 2012. According the Wall Street Journal, Apple accounts for 40 percent of the revenue for the company, also known as the Hon Hai Precision Industry Co. June's numbers were helped by Apple's own strong quarterly numbers, in which the company shipped a record 31.2 million iPhones. The WSJ report however paints a bleaker picture of the company's fortunes. Shares of Hon Hai have fallen about 12 percent since the beginning of 2013 in much the same way that Apple's share price has fluctuated. These fluctuations are due largely to how sales of Apple products often decrease as hardware gets older. Sales are brisk right after a product launch, but as time passes, more buyers consider holding out on buying a product until a new model is released. Apple has seen sales bumps throughout the year as the iPhone 5 has become available on new carriers for the first time. With the impending release of Apple's new fall line of products, including what is expected to be a new iPhone, Foxconn/Hon Hai profits should continue to grow for some time.
Foxconn's Q2 revenues hit $30 billion, up 0.6% year over year
Hon Hai, better known in the west as the iPhone maker Foxconn, seems to be doing just fine after allegedly losing some orders from Apple to competitor Pegatron in September 2012. According to Bloomberg, the company's second quarter revenues hit $30 billion, up 0.6 percent from the same quarter a year ago. That's far better than the 19 percent drop it experienced during the first quarter. While there's no guidance as to Q3 figures, we've got to think that an iPhone 5S can help fill those coffers.
Foxconn applies for license, aiming to get into wireless service
Apple's parts manufacturer of choice, Foxconn, doesn't seem very happy with its current industry. The company recently made its own iPhone-compatible smartwatch (in order to show off that it could design its own devices), and now the Wall Street Journal reports that Foxconn's parent company, Hon Hai, has applied for a high-speed wireless broadband license in Taiwan. An auction for the frequency will happen in September of this year, with bidders being announced in August. This move certainly makes it seem like the company is aiming to provide wireless service, which is a nice industry jump from where it's at right now. Foxconn doesn't seem content with assembling parts for Apple lately, and could be in a few different industries by the end of this year. We'll have to wait and see if that affects Apple's production line at all. It doesn't seem like Foxconn would want to hurt its relationship with Apple, but if it would rather sell products directly to consumers, then it's possible the core business could falter a bit. [via BGR]
Who needs Apple? Foxconn makes an iPhone-friendly smartwatch
Apple has not announced an iWatch, as many folks hoped it would, and that didn't bother Foxconn. The company that manufactures most of Apple's iPhones and iPads has made its own iPhone-compatible smartwatch, which it showed off earlier this week. The watch looks relatively simple, but it can check your pulse and respiration, as well as interact with Facebook and Messages, all while your phone is still in your pocket. There's no information about a launch just yet, but this basically sounds like a proof of concept, a sign that Foxconn is ready to create a device for the quickly growing wearable market. Apple hasn't announced anything yet (and may not ever), but given the rise of Google Glass and other iPhone-compatible wearable electronics, there's certainly a growing expectation that the biggest mobile device manufacturer in the world will eventually step into the wearable market. [via Engadget]
Foxconn demos iPhone-friendly smartwatch with health sensors
Foxconn isn't waiting around for rumors of an Apple smartwatch to come true -- it's building a timepiece of its own. The company has just shown iPhone-compatible wristwear that previews Facebook messages and phone calls while tracking the owner's breathing and heart rate. Upgrades are also coming in the long run, such as a fingerprint reader that would lock down the wearer's health data. Foxconn hasn't discussed launch details for the watch, but it's almost more of a symbol than a product -- it represents the diversification of a business that still leans mostly on contract manufacturing for revenue.
Mozilla inks deal with Foxconn to co-develop Firefox OS devices, shows off its first-ever tablet
In between the packed schedule at Computex earlier today, our brethren over at Engadget Chinese managed to sneak into the joint event held by Foxconn and Mozilla. As you may have already heard, the former company has signed on to become the 19th member of the latter's Firefox OS alliance, and it's already working on at least five devices. That said, it's unclear whether these include the first-ever Firefox OS tablet (pictured above) that was present at the event. And no, we weren't allowed to touch this mysterious device. The two groups will also cooperate on the software side, and Mozilla took the opportunity to indicate the healthy growth in its app ecosystem, with well-known apps like AccuWeather and SoundCloud jumping on board. But will that be enough? We'll see how the developing countries react to the first Firefox OS phones when they come out in the summer. Press release after the break.
China's LeTV debuts 'Super TV' X60, throws in a quad-core S4 Prime chip
Quad-core smart TVs? Move over, Samsung and Haier, because another company's now joining the party. At a press event in Beijing yesterday, Chinese video content provider LeTV announced its first TV series dubbed "Super TV." Despite the cheesy name, there are a handful of big names behind it: Kai-Fu Lee's Innovation Works, Qualcomm, Foxconn and Sharp. The last two aren't surprising considering Foxconn's parent company, Hon Hai, is an investor of Sharp as well as LeTV. It's also worth noting, though, that Hon Hai already has a deal with RadioShack to make and sell a 60-inch TV, the RS60-V1, in China since January. The flagship X60 (pictured above at GMIC Beijing) features an aluminum alloy body that encases Sharp's 10th-generation 60-inch 1080p panel -- as featured on the RadioShack TV -- with 120Hz 3D, on top of a 1.7GHz quad-core Snapdragon S4 Prime MPQ8064 (with 2GB of RAM and Adreno 320 graphics), dual-band WiFi and S/PDIF optical output. You can also add an optional 2.4GHz gyroscopic remote control and a PrimeSense motion sensor just for giggles. But most importantly, LeTV now streams over 2,000 TV apps as well as some 90,000 TV episodes and 5,000 movies for free (LeTV claims to own the rights to 95 percent of the video content). So, the ¥6,999 or $1,140 price tag seems a steal for the X60. There will also be a 39-inch 1080p (likely 2D only), dual-core S40 model priced at ¥1,999 or about $330, and both TVs will be available by the end of June.%Gallery-187824%
Foxconn parent Hon Hai licenses Microsoft's patents for Android, Chrome devices
Microsoft has insisted for years that companies building products based on Android and Chrome are treading on ground covered by its patent portfolio, and it's continuing to press that claim. Today it announced it's agreed to IP licensing terms with another device maker -- Foxconn parent Hon Hai. Perhaps best known for making many Apple products, the massive company manufactures more than 40 percent of consumer electronics devices in the world. According to the press release the deal covers patents for phones, tablets and TVs, and will result in Microsoft receiving royalty payments. We've already seen companies like HTC and LG choose to cut a deal over the technology, while Google-owned Motorola is continuing to fight. It's far too soon to know how those court battles will be resolved, but while the team in Redmond may not have caught up to Android in mobile market share, that doesn't mean it's not getting paid.
iPhone maker Hon Hai sees sudden 19 percent sales drop in 2013 Q1
Reuters is reporting that Hon Hai, the manufacturer that everyone else knows as Foxconn Technology, saw its sales tumble in the first quarter of this year. In the post-Christmas season, the iPhone maker brought in $26.9 billion -- a fall of 19 percent compared to the same quarter last year. It's a strange turn of events, seeing as 2012 turned out to be a record year for the company, but Reuters interprets the figures as being a symptom of a drop in demand for the Apple products that Hon Hai builds and is largely dependent on -- an issue that has been brewing for a while now.
Hon Hai shows record profits, keeps making money from making iPhones
Hon Hai Precision, also known as Foxconn Technology, has reported its earnings for the year and notched a net income of $3.2 billion according to the Financial Times. Most familiar as the manufacturing muscle behind Apple's iPhones, iPads and the like, the Taiwan-based manufacturer beat analyst predictions on high margins for those products. Its subsidiary, Foxconn International Holdings, is the world's largest cellphone maker and produces devices for companies including Nokia and Motorola, but suffered a net loss of $316.4 million. As a result, some are concerned about Foxconn's heavy reliance on Apple as a customer going forward. Still, the company is reportedly continuing a plan to increase vertical integration, by manufacturing the parts for devices and not just putting them together -- we'll see if anyone notices changes in the final product anytime soon.
Sharp takes out $4.6 billion loan while it continues restructuring
Much of the business news out of Japan from Sharp hasn't been good, but for now at least it's worked out a loan agreement to keep rolling. It's still pursuing a deal with manufacturer Hon Hai Precision Industry / Foxconn that would provide a much-needed injection of capital, but those talks have reportedly stalled. Until something happens there it has a 360 billion yen ($4.6 billion) syndicated loan worked out with a couple of Japanese banks that runs until June 30th 2013. We're still not sure how Sharp will proceed with all this, but hopefully an agreement can be reached that brings its sweet IGZO LCD tech and any other new screens it will be showing off at CEATEC next week to more devices.
Riot breaks out at Foxconn's Taiyuan plant, reportedly over guards beating up a worker (update: confirmed)
News just came in that workers at Foxconn's Taiyuan plant have started a riot in the wee hours in China, and that police forces are on site to control the crowd. While the motive isn't clear, Sina Weibo user Li Tian reports that the riot isn't related to the recent anti-Japan protests, though judging by his photos, much damage has been done in the process. The same site suffered from a strike back in March over salary dispute -- the front-line workers failed to receive the promised pay rise. On a similar note, Foxconn's Chengdu plant also had a riot in June, but that was apparently due to an argument between some workers and a local restaurant owner. Update: We are seeing unofficial reports claiming the "2,000-people" riot was triggered by security guards hitting a worker at 10pm local time. Update 2: According to a provincial website, Foxconn's Taiyuan industrial park focuses on magnesium alloy components for consumer electronics, heat conduction products, LED lighting products, mobile phone products and magnesium alloy automotive components. Update 3: An undercover report from August mentioned that the Taiyuan plant processed the back casing of the iPhone 5. It also highlighted the company's harsh management as well as "practically compulsory" over-time work. We don't doubt that this riot escalated due to dissatisfaction over working conditions. Update 4: Unsurprisingly, the original Sina Weibo posts have since been deleted. At the time of publication, the author had already noticed that some of the photos were already being censored by Sina. However, the photos over at Baidu Tieba are still intact. Update 5: Well this is interesting. Foxconn has told Reuters that there was "a fight among workers from different production lines," but the company's spokesperson said they're "still investigating the cause of the fight and the number of people involved." An official statement will be released on Monday. Update 6: The Next Web has heard that there were no deaths in the incident. Here's hoping those 40 injured people will recover quickly. Update 7: Foxconn has told CNET that production has resumed today. Update 8: Reuters spoke to some employees who confirmed the fight between guards and workers. This wouldn't be the first time the two sides clashed in a Foxconn facility.
Foxconn announces $226 million half-year net loss, blames usual suspects
Manufacturing behemoth Foxconn (Hon Hai) has announced a record net loss of $226 million on turnover of $2 billion for the first half of the year. Unsurprisingly, it attributed the loss to the European debt crisis, global economic slowdown and its customers "continuous struggle" for market share. While it made a big push to encourage new customers, capacity far outstripped demand. In order to stem the tide, it's relocating some of its Shenzhen-based facilities to sites in Northern China -- and it's also in talks with carriers to become an ODM, building white-label smartphones in the same way that Huawei and ZTE do. While the loss isn't a rosy picture, the company does have nearly $2 billion stashed in the bank, so it shouldn't be worrying too much.
