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iPad competitors place strain on parts suppliers
The Apple iPad kicked off a tablet revolution in 2010 that promises to explode in 2011. Global tablet shipments are expected to triple in this upcoming year as competing manufacturers rush to produce a variety of slate devices to compete with the iPad. According to IHS iSuppli, this plethora of tablets will disrupt the global display industry, leading to both shortages and excess inventories over the next 12 months. In an attempt to meet anticipated demand, display manufacturers will produce a variety of screens in different configurations. Market forces will cause some displays to sell briskly, while others will sell poorly. Inventory that is leftover will be scrapped or sold at a heavy discount. The tablet market in 2011 will be comprised of a wide variety of devices from large manufacturers (like HP and Dell) as well small manufacturers (like Viliv and Notion Ink). The total volume produced is expected to reach a staggering 57.6 million units, up from 17.1 million in 2010. The bulk of these devices will be powered by some flavor of Android including the tablet-optimized Android 3.0 Honeycomb. RIM is also expected to jump on the tablet bandwagon with its QNX-powered BlackBerry PlayBook, and HP reportedly has a webOS tablet in the works. In the face of this growing competition, Apple should remain confident as the iPad is projected to retain its title as market leader for at least the next two years.
Sharp investing $1.2b in expanding smartphone LCD production, Apple fingered as the major client
Apple's practicing its self-imposed rule of supplier polygamy this week and Japan's Nikkei is telling us all about it. It started off on Monday, when we learned that Toshiba's throwing down some cash to build a new smartphone display production plant, with Apple as the key investor and subsequent consumer, and today we're hearing pretty much the same story, only with Sharp playing the role of Japanese producer to Apple's hardware whims. A "large portion" of the $1.2 billion cost -- identical to what Toshiba's said to be spending -- of expanding Sharp's Kameyama factory is expected to be shouldered by Jobs' cash-rich crew, a postulation also confirmed by Reuters, who's managed to dig up a pair of sources agreeing with the Nikkei. Our Japanese team reports that Sharp has made its expansion plans official, but obviously there's nary a peep about any Apple connection, while DigiTimes says Toshiba has outright denied any involvement with Cupertino. Guess we'll just have to wait for the iPhone 7 teardowns to find out.
iPad 2 camera supplier selected, remains mum
One of the most asked-for features for the second generation of the iPad is a front-facing camera that can be used with Apple's FaceTime video chat app. After all, with FaceTime available on every iPhone 4 and downloadable in beta form for Mac OS X, the ability to engage in video-enhanced conversations with friends and family on future iPads is a foregone conclusion. Now, DigiTimes is reporting that a supplier for the lens module (optics and CCD sensor) for the iPad 2 has been selected by Apple. Largan Precision, the Taiwanese supplier for the 5-megapixel lens module used in the iPhone 4, filed documents with the Taiwan Stock Exchange noting that the company has been selected as the sole lens module supplier for the iPad 2 with shipments beginning in the first quarter of 2011. Not surprisingly, Largan is staying quiet about the deal. The web of secrecy that surrounds announcements of new Apple products extends to suppliers, so we're sure that no confirmation from the company will be forthcoming... not that it's needed. The front-facing camera for the iPhone 4 is only VGA quality to allow for higher video refresh rates over Wi-Fi for FaceTime, so we could speculate that this VGA webcam module might be used in the iPad 2. By the way, the 5-megapixel lens module that is used in the primary iPhone 4 camera isn't shown on Largan's product page, but an 8-megapixel unit is. Is it too early to start speculating that the next generation iPhone will sport an 8-megapixel camera?
Rumor: Fourth gen iPod touch to include Facetime camera
Is the above picture of the fourth generation iPod touch's faceplate? MacRumors thinks so -- they say they got the pictures from an iPhone parts supplier, who claims it's what you'll see on the front of the newest iPod touch. And of course right there on the right side of the case (which would be on top of the screen), you can see a little cutout for what's presumably a front-facing camera meant for Facetime. That lines up with what we've heard in the past, that the iPod touch would use email addresses for Facetime rather than phone numbers. All that said, don't throw your current iPod touch away just yet. Besides the obvious veracity issues here (Photoshop is a powerful drug), we've seen prototypes before that never actually made it to production. In the shot above, you can see "Apple c 2010" (on the little tag off of the case), and in the other picture posted, there's a date stamp that says "10-04-29," so either the design or production of this thing is from much earlier this year (before Facetime was ever announced). And don't forget that there have been other rumors as well -- just because one prototype of the iPod touch has a Facetime camera doesn't mean we'll ever see that (or even only that) go into production. But it's an interesting shot of course, and the evidence is building that we'll see some form of Facetime implemented in Apple's other devices.
44 Chinese workers sue Wintek over screen cleaner poisoning
If you've got an early Apple iPad, chances are its screen was cleaned with a banned substance called n-hexane, which releases a toxic nerve gas upon use. 2,000 workers at Wintek's East China LCD plant went on strike in January, claiming the substance was poisoning them, and now 44 of those reportedly affected are planning to sue. According to reports, the screen cleaner was originally used because it performed better than alcohol, but Wintek has since fired the factory manager who suggested n-hexane and discontinued its use. That didn't keep 62 workers from winding up in the hospital, however. The Guardian interviewed two hospitalized workers last week, and you'll find their stories at our more coverage link below. We're sure you'll agree these Chinese labor violations are getting out of hand -- let's hope this lawsuit spurs government and industry to do something concrete about worker abuse.
National Labor Committee report on Chinese CE factories uncovers deplorable conditions
Yesterday, the National Labor Committee produced a report on the working conditions at the KYE Factory in Dongguan City, Guangdong, China. KYE operates (like many factories in China) a live-work facility and generated sales of $400 million in 2008. KYE manufactures outsourced products for HP, Best Buy, Samsung, Foxconn, Acer, Logitech, and ASUS. Their largest customer, however, is reportedly Microsoft. The report details some of what we've come to expect in stories of labor abuses -- near children, most of them women, working for 16 or 17 hours a day, living in nearly deplorable conditions, for less than a dollar an hour -- all so that the world's ever-growing need for / addiction to consumer electronics can be fed. Now, the gadget industry isn't the only offender by a stretch -- but it's quickly becoming one of the largest (in addition to producing a truly horrific amount of toxic garbage). After the break are some choice facts from the report that our readers might be interested in ingesting, so read on.
Apple supplier audit reveals sub-minimum wage pay and records of underage labor
Apple's famous desire for total control over its operations seems to have extended to its manufacturing facilities as we've come across Cupertino's Supplier Responsibility 2010 Progress Report, which details audits the American company has done of its overseas suppliers and the failures identified therein. The findings are pretty damning on the whole, with more than half (54 percent) of all factories failing to meet Apple's already inflated maximum 60-hour work week, 24 percent paying less than the minimum wage, 37 percent failing to respect anti-discrimination rules, and three facilities holding records of employing a total of eleven 15-year olds (who were over the legal age of 16 or had left by the time of the audit). Apple is, predictably, not jazzed about the situation, and has taken action through train-the-trainer schemes, threats of business termination with recidivist plants, and -- most notably -- the recovery of $2.2 million in recruitment fees that international contract workers should not have had to pay. It should come as no shock to learn that cheaper overseas factories are cutting illegal corners, but it's disappointing to hear Apple's note that most of the 102 audited manufacturers said Cupertino was the only vendor to perform such rigorous compliance checks. Still, we'll take what we can get and the very existence of this report -- which can be savagely skewed to defame Apple's efforts (as demonstrated expertly by The Daily Telegraph below) -- is an encouraging sign that corporate responsibility is being taken seriously. We hope, wherever your geek loyalties and fervor may lie, that you'll agree Apple's leading in the right direction and that its competitors should at the very least have matching monitoring schemes. They may have to swallow some bad PR at first, but sweeping up the dirty details of where gadgets come from is juvenile and has no place in a civilized world. Hit the source link for the full report.
Foxconn: Apple supplier in China roughs up reporter
"A Reuters employee who was investigating Apple's legendary secrecy visited Foxconn's walled city-like facility in Guanlan, China, and was reportedly roughed up by security." The reporter took a taxi to the facility and left the taxi to take photographs of the front gate and security checkpoint. When a guard shouted, the reporter hopped back in the taxi. The guard then blocked the taxi from leaving. This is where it gets hairy. The reporter stepped out of the cab and insisted that he was within his rights to take photographs because he was standing on a main road. The guard grabbed his arm as a second guard arrived and both attempted to drag the reporter into the facility. The reporter asked to be released and when the guards refused the reporter jerked free and began walking off. That's when one guard pursued and kicked the reporter in the leg. The other guard threatened to hit him again if he moved. Within a few minutes a Foxconn security car showed up but the reporter refused to get in. That's when the reporter called the police. The police arrived, the guards apologized, and the reporter left without filing charges. Then the policeman told the reporter, "You're free to do what you want, but this is Foxconn and they have a special status here. Please understand."
Death of Foxconn worker puts supplier back in spotlight
The story, at first, sounded like a wild Internet rumor -- 25-year-old Sun Danyong, an employee with Apple contract manufacturer Foxconn (also known as Hon Hai Precision Industry Co.) leaped to his death following the disappearance of an iPhone prototype. It seemed somewhat far-fetched -- after losing the prototype, Danyong supposedly had his apartment illegally searched, and he was reportedly treated roughly by Foxconn security personnel. But on Tuesday, Apple released a statement to CNET acknowledging Danyong's death without providing any additional details. "We are saddened by the tragic loss of this young employee, and we are awaiting results of the investigations into his death," Kristin Huguet told CNET. "We require our suppliers to treat all workers with dignity and respect." This is not the first time that Foxconn's treatment of its employees has come into the spotlight. In 2006, Chinese reporters alleged that the company was not following labor laws, and the company subsequently admitted it. Apple's investigation at the time revealed some issues, but found the company mostly in compliance with its supplier responsibility standards. There is incredible pressure from suppliers to retain business from high-profile companies -- like Apple -- who not only attract a lot of money, but prestige as well. Knowing how highly Apple values secrecy in the product development process, manufacturing concerns fear the loss of business if a leak can be pinned on them. For an NSFW but surprisingly insightful take on the tragedy, take a look at today's post from Fake Steve Jobs (Dan Lyons). As reported in the Wall Street Journal, Chinese media is blaming Foxconn's management for Danyong's death. Given the information available, however, it does not appear that Apple was directly involved in this case. The case has been handed over to Chinese police for further investigation.
Are these the companies inside the next iPhone?
With the Pre's launch date looming it's nearly time for Apple to launch its counter-attack, and today we have what appears to be further confirmation of component orders for the so-called iPhone 3.0. DigiTimes is claiming to have a nearly comprehensive rundown of component suppliers for Apple's next-gen hotness, again indicating Samsung will be providing the memory, but also saying that a CSR chip will continue to handle Bluetooth duties, a 3.2 megapixel OmniVision sensor will tackle image-capture duties, and going on to list over a dozen other suppliers you may or may not have heard of -- though sadly failing to identify a CPU maker. All these companies are supposedly ramping up to begin shipments in May for a mid-2009 release, with a target of 5 million units for launch. However, while many of these names line up with rumors we've heard already, with no sources named and none of these suppliers able to comment, you might want to hit up your local source of salt for a grain or two.
Vizio caves on patent dispute and joins MPEG-LA licensees, gobble gobble
Chalk another one up for MPEG-LA, as the licensing group's members have dropped lawsuits against Vizio stemming from the one-time value HDTV company's refusal to license MPEG-2 technology, claiming it's suppliers had already paid the necessary fees. Despite Amtran's pleas, just like Target's TruTech brand televisions and DVD players, that argument appears to have quickly folded, . It remains to be seen what direct effect this will have on price, but between this and Vizio's notable Black Friday absence they must be serious about changing to a more upscale image, we wonder if Sony will invite them to a special reception. (Warning: PDF read link)
Mitsubishi Chemical to produce laser diodes for BD pick-up heads
Given that Sharp will obviously be needing a few high-power laser diodes to go into its forthcoming 8x Blu-ray burners, it's good to see Mitsubishi Chemical hopping in the fabrication game in order to lower costs and keep consumers smiling. A new report asserts that the previously mentioned company will be dedicating at least some of its efforts to producing high-power (200 to 300mW) laser diodes, which are currently in short supply and used in the pick-up heads of BD writers. As it stands, just Sony, Nichia and Sharp are producing these things in volume, though a fourth wheel will certainly be welcome. There's no word on when exactly Mitsu Chemical plans to ramp up production, but the sooner the better, we say.
AT&T gives Motorola an award, Motorola proceeds to gloat
Look, everyone knows things aren't exactly gangbusters over at Motorola right now, but it's downright depressing when you've got to pat your own self on the back for an award given to you by AT&T. Even worse, the Outstanding Supplier recognition "in the area of teamwork" seems like something that should be expected as one mega-corp works with another, but we digress. Moto was apparently one of 27 that received similar awards, though we haven't tallied up precisely how many others felt the need to publicly gloat. Said Dan Moloney, president of Motorola's Home and Networks Mobility business, "we are delighted to be named amongst AT&T's best of the best in teamwork." And we're delighted for you, Mr. Moloney.
Mitsubishi (and the world) sue Vizio over MPEG-2 patents
It's no secret the rest of the display industry hasn't been happy with Vizio shaking up the low end with its cheap HDTVs, and now Mitsubishi and others have joined in a lawsuit accusing the manufacturer of refusing to license necessary patents. The 15 patents allegedly violated are for MPEG-2 compression that Mitsu, Sony, Samsung, Philips, Thomson, JVC and Columbia University of New York claim Vizio refuses to license. Vizio says it don't need no stinking licenses, since its suppliers already have them and it believes these licenses extend to its products. MPEG-LA also filed a similar suit against Target's TruTech house brand of televisions; while we'll have to wait for a ruling on the case to see who is right, it seems if they can't compete with these lower prices, other manufacturers will make sure cheap HDTVs cost more to make. For its part, Vizio says it does not believe this suit will have a materially adverse impact on its business, so for now, let the low-price flat screens roll.Read - Mitsubishi, Samsung Sue Vizio Over Video PatentsRead - VIZIO Comments on MPEG-2 Lawsuit By Electronics Competitors
