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Foxconn Improving Efficiency and Yield Rates to Secure Apple’s Business

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Foxconn Electronics has been the primary manufacturer for iPhone and iPad orders, that was until earlier reports revealed Apple had placed 15 million next-generation iPhone 5 orders with Pegatron Technology.

Digitimes reports Foxconn has been working swiftly to raise its production efficiency and improve yield rates, in order to maintain business with its existing clients such as Apple, and to prevent competitors from stealing its business.

As Apple has started to diversify its manufacturing contracts, the company is attempting to minimize risks, according to sources. The shift to a Pegatron is dependent on its ability to deliver production volume, and meet strict guidelines from Apple.

An explosion at a Foxconn chemical plant affected Apple’s iPad supply chain recently. Foxconn employees have continued to make headlines over suicides and working conditions, which Apple has been working to improve.

I don’t think it matters which company lands contracts from Apple, as long as its employees have good working conditions. Product quality will always be up to Apple’s high standards long before they hit shelves.

[Digitimes]

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  • Anonymous

    If it’s cheaper to move the Manf process by all means do it. As long as price of apple products don’t increase I’m good.

  • Anonymous

    Diversification amongst suppliers = less noticeable hiccups in the supply chain!

  • Anonymous

    Diversification amongst suppliers = less noticeable hiccups in the supply chain!

  • Anonymous

    Diversification amongst suppliers = less noticeable hiccups in the supply chain!

  • Anonymous

    Diversification amongst suppliers = less noticeable hiccups in the supply chain!

  • Rustybarnacle

    I’d be OK with paying a little more if the contracts went to companies that didn’t inspire mass suicides.  🙁

  • Rustybarnacle

    I’d be OK with paying a little more if the contracts went to companies that didn’t inspire mass suicides.  🙁

  • Rustybarnacle

    I’d be OK with paying a little more if the contracts went to companies that didn’t inspire mass suicides.  🙁

  • Anonymous

    “raise its production efficiency and improve yield rates”?   Probably means more overtime and harsher conditions for the workers 🙁 .  It was reported in Chengdu factory, where iPad is assembled, workers are expected to do 80-100 hours of overtime per month, on top of the 174 regular working hours.  Even though overtime is “voluntary”, the basic pay is so low that most workers need the overtime to attain regular salary.

    Making mistakes also result in public humiliation.  Workers need to write “confession” letter to the supervisor; and if the mistake is serious, the worker has to read that confession letter in front of everyone.  Yes, that’s how Foxconn achieves its impressive yield rates.

  • Anonymous

    “raise its production efficiency and improve yield rates”?   Probably means more overtime and harsher conditions for the workers 🙁 .  It was reported in Chengdu factory, where iPad is assembled, workers are expected to do 80-100 hours of overtime per month, on top of the 174 regular working hours.  Even though overtime is “voluntary”, the basic pay is so low that most workers need the overtime to attain regular salary.

    Making mistakes also result in public humiliation.  Workers need to write “confession” letter to the supervisor; and if the mistake is serious, the worker has to read that confession letter in front of everyone.  Yes, that’s how Foxconn achieves its impressive yield rates.

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