iPad 5 and iPad mini 2 Not Foxconn Responsability Anymore
It seems that Apple has decided to choose someone else to work with in the production of the iPad mini 2 tablets and the iPad 5, as new reports claim that part, if not all of the manufacturing tasks have been moved from Apple’s long term partner, Foxconn. The first clue we’ve had regarding this action was when Foxconn registered a steep drop in manufacturing income, which made some believe that the sales of the iPhone and iPad devices were suddenly falling off a cliff, as Apple empowered Foxconn with a big part of the manufacturing work. However, Apple’s following reports of the overall quarter income have shown that the sales in Apple’s mobile area are still strong, with a slight increase in the iPad department. If Apple will transfer the manufacturing job to another company, we should expect some changes in both the iPad mini 2 and thee iPad 5.
The main reasons of this separation has, of course two aspects. One of them would be that Foxconn become unable to deliver the target objectives. As a consequence to the departure of two of Foxconn’s key directors, the company’s quality control went down to the point where Apple had to reject thousands of defective devices before shipping them to retail stores, which created some supply issues at the last iPhone launch. The other aspect is that Apple is trying to put an end to partnerships which involve companies that interact with the competitor Android environment. Apparently Foxconn has been leaking some classified information to copycat vendors. And most of the information slips come from low level employees working on the assembly lines, and seeing the final product before being announced publicly. This gap of leak feeds about the iPad mini 2 and the iPad 5, although we know both of them are being manufactured as we speak, could be put on the fact that Foxconn is no longer a member of the manufacturing team.
Besides, Apple succeeded so far, to keep the name of their new partner a secret. However, this might be unveiled as soon as the iPad 5 and iPad mini 2 production will be on full engines. For the moment, Apple’s plans regarding the redistribution of the manufacturing work, whether they imply Apple building a new factory or finding a new partner remain under wraps. As for Foxconn, they keep accusing Apple publicly for the low iPad income, highlighting on purpose that Apple sales have gone down the hill.
But considering that Apple’s sales numbers point exactly the opposite of that, Foxconn seems to be holding some grudge over Apple’s decision. Instead of trying to patch up the things with Apple, Foxconn has been making false statements about the iPhone manufacturer, just like a wife in the middle of a divorce lawsuit. Obviously, this could only make Apple pack up their stuff from Foxconn faster.
The reasons for Apple’s divorce from Foxconn is two fold. One is that the company has become less reliable. After two key longtime executives departed Foxconn, its quality control slipped to the point that Apple had to reject thousands of defective units before they got to stores, creating a minor supply constraint at the start of the lastiPhone launch. The other is that Apple is increasingly shifting away from doing business with vendors who are part of the competing Android ecosystem; Foxconn manufactures such tablets on the days it isn’t churning out iPads, and Apple has come to suspect that the factory may be leaking product secrets to vendors which Apple considers copycats. Most product leaks come from the assembly lines, where low level workers can see what’s being put together before it’s been publicly announced. The lack of leaks regarding the iPad 5 or the iPad mini 2, both of which are near launch and may already be in production, can be explained by the fact that Foxconn is no longer the one manufacturing them.
