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Apple can make US-bound iPhones outside of China if necessary
If the trade war between the US and China spirals out of control and leads to Chinese retaliation against American tech production, is Apple hosed? Not necessarily. Senior Foxconn exec Young Liu told investors that his manufacturing company has "enough capacity" to make US-bound iPhones outside of China if necessary. About a quarter of that capacity is elsewhere, Liu said, including growing Indian production. While Apple hasn't made any moves on that front, Foxconn can shift its lines elsewhere if things go south.
Google lends its robot expertise to help boost Foxconn's assembly lines
As the world's biggest electronics manufacturer, Foxconn has often been there to help Google. It provides the nuts and bolts for Glass, after all. However, a new report suggests Google's continued investment in robotics has put it in a position to give something back, using its own technology to better automate Foxconn's assembly robots. The Wall Street Journal reports that Google's Andy Rubin, the man who once led Android and now directs Mountain View's robotics efforts, recently met with Foxconn chairman Terry Gou to help "speed up robot deployment" at Hon Hai factories, with a view to integrating one of Google's own engineering companies later down the line. Google, of course, acquired BigDog-maker Boston Dynamics late last year, snatching up an additional seven technology companies to help it realize its robotic dreams. As it stands, Google and Foxconn's partnership will initially focus on improving the efficiency of the Taiwanese company's robot workforce, as it looks to mitigate against rising labor costs and improve production yields. Google is also tipped to turn its robots loose on Amazon, with Jeff Bezos' retail business reportedly fixed firmly in its crosshairs.
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.
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]
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.
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.
Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value
Foxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.
Foxconn to build new plant for iPhone screens with Sharp's help
Sharp and Hon Hai Precision, parent company of Foxconn, are partnering to improve the LCD manufacturing process for the iPhone. A report by Reuters points to Nikkei business daily report that says Sharp is helping Foxconn outfit a new Chengdu plant with the latest LCD manufacturing technology. Foxconn will use Sharp's know-how to improve its iPhone display manufacturing process. In return, Hon Hai, parent company of Foxconn, will buy an 11 percent stake in Sharp that's worth 66.9 billion yen (US$844 million as of this writing). This agreement follows an earlier deal that gave Hon Hai a 46.48 percent stake in a Sharp's most advanced LCD display plant in Sakai, Western Japan.
Sharp reportedly getting cozy with Hon Hai Precision, helping to make phone and tablet LCDs in Chengdu
If we believe Japan's Nikkei, the decision by Hon Hai Precision Industry (that is, Foxconn's daddy) to buy a stake in Sharp was really just the start of a long, torrid love affair in LCD production. While Hon Hai is getting the rosy side of the deal for Sharp's TV-oriented Sakai plant, it's now thought to be paying Sharp for display technology that would go into a new factory in Chengdu for small- and medium-sized LCDs used for smartphones and tablets. If all dovetails as nicely as the two would like, the joint venture would see advanced mobile displays manufactured on the cheap -- the best of both worlds. Suffice it to say that there's a few companies that might be interested, as clients like Apple are no strangers to Chengdu. Before you let visions of IGZO-based LCDs on every iPad and iPhone dance through your head, though, remember that neither Hon Hai nor Sharp has confirmed anything -- and that the plant wouldn't be up and running until 2013 at the earliest, even if everything's in sync.
Apple to seek new life for iPhone 3GS in emerging markets
The iPhone 3GS is still being sold in the US and other countries, but by the time the next-generation iPhone appears later this year the 3GS will be getting a little long in the tooth. Jefferies & Company analyst Peter Misek says that Apple has apparently signed a deal with a global distributor to sell the 3GS as a prepaid phone in emerging markets. In a note to clients, Misek didn't provide a lot of information but did say that he thinks the wholesale cost of the iPhone 3GS will drop from the current US$375 to $200 to $250. Jefferies has increased its estimates of iPhone sales for the quarter ending June 30, 2012. Misek doesn't believe that other Wall Street analysts are properly accounting for Hon Hai's (Foxconn) plant in Brazil, and thinks that Apple will manufacture between 28 and 30 million iPhones. The pessimists on The Street say that Apple's iPhone production will be about 2 million iPhones less than the range quoted by Jefferies & Company.
Report: Foxconn spending $210 million on Apple production line
China Daily is claiming that Foxconn will pump $210 million into building a production line in China's Jiangsu province. Local authorities have stated that the plant in Huai'an city will produce components for Apple, no doubt heralding a raft of rampant speculation as to Cupertino's intentions. The building will occupy 40,000 square meters, produce $1.1 billion worth of gear per year and require 35,800 employees -- more than Nokia and Sony have fired in recent months, combined.
Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays
Sharp has reported an extraordinary loss of 117.1 billion yen ($1.4 billion) for the financial year ending March 2012. The company has cited restructuring costs and inventory losses as the causes for the write-down, but also projected that its TV business would lose a further 18.7 percent of its projected sales in the current year. The company has decided to convert some of its big-screen LCD production lines into mobile LCDs as it tries to reassert its dwindling display business. It's yet more bad news after the company sold part of its LCD manufacturing business to Hon Hai, Sony withdrew from a joint venture and refused to deal with Sharp in the future, plus an 86 percent collapse in profits.
Apple supplier Hon Hai Precision Industry to "significantly" raise wages
Workers at Taiwanese plants run by Hon Hai Precision Industry -- the parent company of iPad and iPhone manufacturer Foxconn -- will begin to see some benefit of the popularity of the Apple products they manufacture in the form of "significantly" higher wages. The company is doing this primarily to attract and retain top talent at its Taiwanese manufacturing facilities. Foxconn has recently worked on improving worker conditions at plants in mainland China, raising wages and reducing the number of overtime hours worked by employees.
Sony and Sharp joint venture hits a rocky patch, Sony cuts off capital
When Sharp sold off some of its LCD manufacturing business to Hon Hai Precision we knew the company had fallen on tough times, we just didn't realize how bad things truly were. That joint venture it formed with Sony, well, it's all but over at this point. The two companies have amended their deal with each other and Sony has decided not to inject any more capital into the project. That's not entirely surprising since the relationship was already starting to show signs of strain, but the partnership could crumble at any moment. A study period has been designated, through the end of September, to decide what the future holds for the two regarding the production and purchase of large panel LCDs, but at any time Sony can simply demand that Sharp buy back its shares and leave the venture. For Sharp's sake, we certainly hope Hon Hai is in this for the long haul. Check out the legalese stuffed PR after the break.
Hon Hai Precision snaps up 10 percent of Sharp in display tie-up
For those unaware, going at it alone in the cutthroat display business isn't exactly a recommended business approach. To wit, Sharp -- once a mainstay in the LCD industry -- has just sold an approximate 10 percent stake of itself to Taiwan's Hon Hai Group. Sharp will be issuing new shares worth $808 million to Hon Hai Precision Industry Co., and we're told that it'll go down as the largest investment ever in a Japanese company by a Taiwanese one. Moreover, Hon Hai will grab half of Sharp's 92.96 percent stake in its LCD panel factory in Sakai, Japan. Though it may not be obvious, seeing Sharp accept this fate is hugely symbolic, and it's happening just as the company gets ready to eat "multibillion-dollar losses" for this fiscal year -- which just so happens to be the 100th anniversary of its founding. Sharp executive managing officer Takashi Okuda said this during a news conference in Tokyo: "We have tried to do everything by ourselves, but the environment is tough." Here's hoping for a better tomorrow, though.
