Who are the Apple iPhone contract manufacturers?




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DOSSIER – On June 28, 2018, photo of the case, President Donald Trump, center, with Wisconsin Governor Scott Walker, left, and Foxconn President Terry Gou, participate in a groundbreaking event for the new facility Foxconn to Mt. Foxconn Technologies Group said on Wednesday, January 30, 2019, that the goal of its $ 10 billion Wisconsin-funded campus was going from blue-collar manufacturing to a center of research, while insisting that he remains committed to creating 13,000 jobs promised. (AP Photo / Evan Vucci, File)

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Next Monday, a long-awaited trial between Qualcomm and Apple will begin in San Diego. The legal confrontation is the next important chapter in a two-year conflict between the two technological powers and now, as part of this test, Apple's subcontractors. You can find out about the previous two years right here.

Next week's festivities are complex as it is the merger of four lawsuits. Here's the pursuit of who:

  • Apple sues Qualcomm for alleged lack of payments for volume discounts under its trade and patent cooperation agreement (BCPA), violating FRAND's price for its wireless intellectual property and uses its monopoly position to ask for excessive prices.
  • Apple's subcontractors are similarly suing Qualcomm against Qualcomm for overcharging its intellectual property.
  • Qualcomm sues Apple's contractors for withholding payment for use of its IP
  • Qualcomm sues Apple in court over alleged criminal interferences between Qualcomm and the contract manufacturers.

Fun, no? This conflict has aroused and will continue to be talked about today, but today I wanted to shed light on the relatively unknown manufacturers of Apple (R) or the original device manufacturers (ODM) who are at the center of this conflict. The MDGs, for the uninitiated, work on behalf of companies like Apple for the manufacture of their smartphones. Apple does not manufacture its own devices and does not actually have an IP agreement with Qualcomm; The Qualcomm agreements are concluded with the MDGs. I had a few decades of experience with ODMs when I was an equipment supplier and a guy with chips, and the ODMs are an interesting group. Let's take a closer look at who these ODMs are.

Foxconn, turnover of 152 billion dollars

Apple's largest ODM is Foxconn, based in Taiwan (officially known as Hon Hai Precision Industry Co., LTD). Foxconn is the world's leading supplier of electronic products, employing 250,000 people worldwide (as of 2018), with manufacturing sites in Taipei, Suzhou, Mexico City, Madrid, Cleveland, etc. Most of his fabrications are made in China.

Foxconn was founded by CEO Terry Gou in 1974, with the stated goal of "providing low-cost mechanical and electrical parts to reduce the overall cost of electronics around the world." I had met Terry Gou several times in a tête-à-tête when I worked in the product management at Compaq Computer and made billions of deals with him. At the time, Foxconn manufactured cheap power cards and connectors.

Foxconn Technology Group President Terry Gou speaks at the groundbreaking ceremony of the company's headquarters in Shanghai, China on Thursday, May 10, 2012. The Foxconn Technology Group, the largest Global assembler of consumer electronics products, has begun the work of the headquarters which, according to her, will help direct her efforts to sell more in the Chinese market. (AP Photo)

ASSOCIATED PRESS

Today, it is a powerhouse, a publicly traded company with revenue exceeding 152 billion dollars in 2018. Foxconn specializes in the manufacture of smartphones, personal computers, servers, power supplies and connectors. In addition to Apple, its top five customers include Dell, HP Inc., Samsung and LG. You probably used a product made by Foxconn; his repertoire includes the iPhone, iPod, iPad and Apple Watch.

The company must be applauded for offering economic opportunities to 250,000 of its workers, but it is not without controversy. He suffered allegations of poor working conditions and long hours of work. In 2010, 14 employees of Foxconn committed suicide, which was attributed to the company's high-pressure work environment and exploitation (read an excerpt from Brian Merchant, The only device: the secret history of the iPhone, published by The Guardian right here). Apple is committed to investigate the manufacturer. Tim Cook would have met suicide prevention experts and Foxconn management in 2011. Ultimately, Apple decided to maintain the working relationship.

The company also recently made headlines (many negatives) on its Wisconsin manufacturing center construction project, motivated by the largest public subsidy program ever awarded to a foreign company by the US – approximately $ 4.5 billion in incentives. Foxconn initially promised to create up to 13,000 well-paying jobs by 2022, an economic impact that was questioned by reports that Foxconn was considering cutting back on manufacturing and using the Wisconsin facilities solely for research and development purposes (Bloomberg recently released a scathing report on the agreement right hereif interested in reading more). Recently, according to CNNFoxconn looked back on previous reports and said it would actually use the Wisconsin factory for manufacturing, although the number of jobs corresponding to this role is greater than that of R & D and workers in the US. know.

Foxconn is the industry giant and I have the feeling that it's sure to have been built, in part, by Apple. I worked at Compaq with Dan Riccio, then a mechanical engineer at Compaq, who is now Apple's hardware manager, who, I know, knew Gou and worked with Foxconn.

Wistron, $ 29 billion in revenue

Next is Wistron, another Taiwan-based manufacturer of consumer IT and electronics products. Wistron began as a manufacturing subsidiary of Acer, divested to the PC manufacturer in 2000. Its business segments include desktop and laptop computers, storage and storage systems, handheld devices, and a variety of products. networking and communication. as one of the largest notebook manufacturer in the world. Its big partnerships include Apple, Microsoft, Dell, Hewlett Packard and, of course, Acer.

Simon Lin, President and CEO of Wistron Corp., goes to the Intel Corp. press conference. in Taipei, Taiwan, on Thursday, October 28, 2010. Wistron Corp. is the third largest notebook manufacturer in the world. Photographer: Maurice Tsai / Bloomberg *** Local Legend *** Simon Lin

BLOOMBERG NEWS

Wistron is a publicly traded company with 83,000 employees in 2018 worldwide in manufacturing and support centers in China, Malaysia, Mexico, the Czech Republic and the United States. In 2018, Wistron earned $ 28.9 billion in revenue with gross profits close to $ 1.21 billion.

Wistron made headlines Friday at Apple: the Indian government has suspended Apple's import license by asking the following question: "Wistron or another Apple supplier has he tried to hide his non-compliance with the rules on electronic waste? " tough.

Pegatron, $ 44 billion

That brings us to Pegatron, which is also headquartered in Taiwan. Pegatron began its career as an industry of ASUSTek Computer (also known as ASUS), which was established in 2008. ASUS, as such, still holds approximately 17% of the company's shares. Pegatron specializes in the manufacture of desktops and laptops, wireless systems, motherboards, game consoles, smartphones and televisions. Apple and HP are its biggest customers. The iPhone 4 and 5c have both been manufactured by Pegatron.

Employees stand in line for a call at a Pegatron Corp. plant in Shanghai, China, on Friday, April 15, 2016. It is in this realm that are manufactured the most profitable smartphones in the world, which are part of the closely monitored supply chain of Apple Inc. . Photographer: Qilai Shen / Bloomberg

&copy; Bloomberg Finance LP 2016

In 2018, Pegatron employs approximately 90,000 people worldwide, in Taiwan, the Czech Republic, China, Mexico, Japan and the United States. In 2018, it generated a turnover of 44.43 billion dollars with profits of 1.29 billion dollars. Like Foxconn, Pegatron has also undergone a thorough review of the working conditions of its factories near Shanghai, which manufacture Apple products (see the BBC report on infiltration). right here). In 2016, Bloomberg visited the factory and reported Pegatron and Apple have adopted new procedures to prevent iPhone assemblers from hoarding excessive overtime. "

Pegatron recently signed on "Apple's commitment to run their Apple production with 100% clean energy. "

Compal, $ 32 billion in revenue

Finally, let's talk about Compal. The smallest of these 4 ODMs, Compal is also located in Taiwan and employs around 64,000 people. Founded in 1984, the group is primarily known for the manufacture of laptops, mobile devices, connected devices, LCDs and healthcare products. According to Nikkei Asian Review, Compal is trying to expand its business beyond its core business of laptops and industrial computers.

The exterior of the Compal electronics, Inc. headquarters is located in Taipei, Taiwan on Monday, October 23, 2006. Compal Electronics Inc., the world's second largest notebook maker, has announced a 2% profit decline third quarter price declines and losses on its flat panel and telecommunications investments. Photographer: Maurice Tsai / Bloomberg News

BLOOMBERG NEWS

Compal is responsible for manufacturing many products that you may have used at one time – Amazon Amazon, Dell and Lenovo computers, Apple iPads, HTC and Sony. Compal achieved a turnover of $ 32.09 billion in 2018, with profits of $ 987.67 million. The main manufacturing plant of the company is located in China. In addition to its headquarters in Taipei, it has offices in South Korea, the United Kingdom, the United States and China.

pack

Hopefully these Apple iPhone ODM profiles will serve as useful background information on some of the lesser known players of the biggest Apple-Qualcomm quarrel, which is expected to reach a crescendo in the coming weeks. Net-net, the first four ODM for Apple iPhone smartphones are very large and sophisticated businesses, generating a turnover of 260 billion dollars. & nbsp; Keep this in mind as you follow the test over the next six weeks. I will follow the lawsuit with interest – stay tuned for additional coverage.

Note: Moor Insights & amp; Policy writers and writers may have contributed to this article.& nbsp;& nbsp;

Disclosure: Moor Insights & amp; Strategy, like all research and analysis companies, provides or has provided paid research, analysis, consulting or consulting services to many high-tech companies in the sector, including:Advanced micro systems, & nbsp; Apstra,ARM Holdings, & nbsp; Bitfusion,Cisco Systems,DellEMC, Diablo Technologies, Echelon, Ericcson, Frame, Gen Z Consortium, Glue Networks, GlobalFoundries,Google(Nest),HPInc.HewlettPackard & nbsp; Enterprise,HuaweiTechnologies,IBM,Circuit Jabil,Intel, Interdigital, Konica Minolta,Lenovo, Linux Foundation, MACOM (Applied Micro), & nbsp; MapBox, & nbsp; Mavenir, & nbsp;mesosphere,Microsoft,National Instruments, NOKIA (Alcatel Lucent), Nortek,NVIDIA, UNOG, OpenStack Foundation, & nbsp; Peraso, & nbsp; Portworx, & nbsp; Protequus, Pure Storage,Qualcomm, Rackspace, Rambus,Red Hat, Samsung Technologies, Silver Peak, SONY, Springpath, Sprint, Stratus Technologies, & nbsp; TensTorrent, & nbsp; Tobii & nbsp; Technology, & nbsp;Synaptics& nbsp;Verizon Communications, Vidyo, Wellsmith, & nbsp;Xilinx, Zebra, who can be quoted in this article.& nbsp;& nbsp;

& nbsp;

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DOSSIER – On June 28, 2018, photo of the case, President Donald Trump, center, with Wisconsin Governor Scott Walker, left, and Foxconn President Terry Gou, participate in a groundbreaking event for the new facility Foxconn to Mt. Foxconn Technologies Group said on Wednesday, January 30, 2019, that the goal of its $ 10 billion Wisconsin-funded campus was going from blue-collar manufacturing to a center of research, while insisting that he remains committed to creating 13,000 jobs promised. (AP Photo / Evan Vucci, File)

ASSOCIATED PRESS

Next Monday, a long-awaited trial between Qualcomm and Apple will begin in San Diego. The legal confrontation is the next important chapter in a two-year conflict between the two technological powers and now, as part of this test, Apple's subcontractors. You can find out about the previous two years right here.

Next week's festivities are complex as it is the merger of four lawsuits. Here's the pursuit of who:

  • Apple sues Qualcomm for the alleged lack of payments for volume discounts under its trade and patent cooperation agreement (BCPA), violating FRAND's pricing of its wireless intellectual property and using its monopoly position to demand excessive prices.
  • Apple's subcontractors are similarly suing Qualcomm against Qualcomm for overcharging its intellectual property.
  • Qualcomm sues Apple's contractors for withholding payment for use of its IP
  • Qualcomm sues Apple in court over alleged criminal interferences between Qualcomm and the contract manufacturers.

Fun, no? This conflict has aroused and will continue to be talked about today, but today I wanted to shed light on the relatively unknown manufacturers of Apple (R) or the original device manufacturers (ODM) who are at the center of this conflict. The MDGs, for the uninitiated, work on behalf of companies like Apple for the manufacture of their smartphones. Apple does not manufacture its own devices and does not actually have an IP agreement with Qualcomm; The Qualcomm agreements are concluded with the MDGs. I had a few decades of experience with ODMs when I was an equipment supplier and a guy with chips, and the ODMs are an interesting group. Let's take a closer look at who these ODMs are.

Foxconn, turnover of 152 billion dollars

Apple's largest ODM is Foxconn, based in Taiwan (officially known as Hon Hai Precision Industry Co., LTD). Foxconn is the world's leading supplier of electronic products, employing 250,000 people worldwide (as of 2018), with manufacturing sites in Taipei, Suzhou, Mexico City, Madrid, Cleveland, etc. Most of his fabrications are made in China.

Foxconn was founded by CEO Terry Gou in 1974, with the stated goal of "providing low-cost mechanical and electrical parts to reduce the overall cost of electronics around the world." I had met Terry Gou several times in a tête-à-tête when I worked in the product management at Compaq Computer and made billions of deals with him. At the time, Foxconn manufactured cheap power cards and connectors.

Foxconn Technology Group President Terry Gou speaks at the groundbreaking ceremony of the company's headquarters in Shanghai, China on Thursday, May 10, 2012. The Foxconn Technology Group, the largest Global assembler of consumer electronics products, has begun the work of the headquarters which, according to her, will help direct her efforts to sell more in the Chinese market. (AP Photo)

ASSOCIATED PRESS

Today, it is a powerhouse, a publicly traded company with revenue exceeding 152 billion dollars in 2018. Foxconn specializes in the manufacture of smartphones, personal computers, servers, power supplies and connectors. In addition to Apple, its top five customers include Dell, HP Inc., Samsung and LG. You probably used a product made by Foxconn; his repertoire includes the iPhone, iPod, iPad and Apple Watch.

The company must be applauded for offering economic opportunities to 250,000 of its workers, but it is not without controversy. He suffered allegations of poor working conditions and long hours of work. In 2010, 14 employees of Foxconn committed suicide, which was attributed to the company's high-pressure work environment and exploitation (read an excerpt from Brian Merchant, The only device: the secret history of the iPhone, published by The Guardian right here). Apple is committed to investigate the manufacturer. Tim Cook would have met suicide prevention experts and Foxconn management in 2011. Ultimately, Apple decided to maintain the working relationship.

The company also recently made headlines (many negatives) on its Wisconsin manufacturing center construction project, motivated by the largest public subsidy program ever awarded to a foreign company by the US – approximately $ 4.5 billion in incentives. Foxconn had originally pledged to create up to 20,000 well-paying jobs by 2022, an economic impact that was questioned by reports that Foxconn was considering cutting manufacturing and using the Wisconsin facilities solely for research and development purposes (Bloomberg recently released a scathing report on the agreement) right hereif interested in reading more). Recently, according to CNNFoxconn looked back on previous reports and said it would actually use the Wisconsin factory for manufacturing, although the number of jobs corresponding to this role is greater than that of R & D and workers in the US. know.

Foxconn is the industry giant and I have the feeling that it's sure to have been built, in part, by Apple. I worked at Compaq with Dan Riccio, then a mechanical engineer at Compaq, who is now Apple's hardware manager, who, I know, knew Gou and worked with Foxconn.

Wistron, $ 29 billion in revenue

Next is Wistron, another Taiwan-based manufacturer of consumer IT and electronics products. Wistron began as a manufacturing subsidiary of Acer, divested to the PC manufacturer in 2000. Its business segments include desktop and laptop computers, storage and storage systems, handheld devices, and a variety of products. networking and communication. as one of the largest notebook manufacturer in the world. Its big partnerships include Apple, Microsoft, Dell, Hewlett Packard and, of course, Acer.

Simon Lin, President and CEO of Wistron Corp., goes to the Intel Corp. press conference. in Taipei, Taiwan, on Thursday, October 28, 2010. Wistron Corp. is the third largest notebook manufacturer in the world. Photographer: Maurice Tsai / Bloomberg *** Local Legend *** Simon Lin

BLOOMBERG NEWS

Wistron is a publicly traded company with 83,000 employees in 2018 worldwide in manufacturing and support centers in China, Malaysia, Mexico, the Czech Republic and the United States. In 2018, Wistron earned $ 28.9 billion in revenue with gross profits close to $ 1.21 billion.

Wistron made headlines Friday at Apple: the Indian government has suspended Apple's import license by asking the following question: "Wistron or another Apple supplier has he tried to hide his non-compliance with the rules on electronic waste? " tough.

Pegatron, $ 44 billion

That brings us to Pegatron, which is also headquartered in Taiwan. Pegatron began its career as an industry of ASUSTek Computer (also known as ASUS), which was established in 2008. ASUS, as such, still holds approximately 17% of the company's shares. Pegatron specializes in the manufacture of desktops and laptops, wireless systems, motherboards, game consoles, smartphones and televisions. Apple and HP are its biggest customers. The iPhone 4 and 5c have both been manufactured by Pegatron.

Employees stand in line for a call at a Pegatron Corp. plant in Shanghai, China, on Friday, April 15, 2016. It is in this realm that are manufactured the most profitable smartphones in the world, which are part of the closely monitored supply chain of Apple Inc. . Photographer: Qilai Shen / Bloomberg

© 2016 Bloomberg Finance LP

In 2018, Pegatron employs approximately 90,000 people worldwide, in Taiwan, the Czech Republic, China, Mexico, Japan and the United States. In 2018, it generated a turnover of 44.43 billion dollars with profits of 1.29 billion dollars. Like Foxconn, Pegatron has also undergone a thorough review of the working conditions of its factories near Shanghai, which manufacture Apple products (see the BBC report on infiltration). right here). In 2016, Bloomberg visited the factory and reported Pegatron and Apple have adopted new procedures to prevent iPhone assemblers from hoarding excessive overtime. "

Pegatron recently signed on "Apple's commitment to run their Apple production with 100% clean energy. "

Compal, $ 32 billion in revenue

Finally, let's talk about Compal. The smallest of these 4 ODMs, Compal is also located in Taiwan and employs around 64,000 people. Founded in 1984, the group is primarily known for the manufacture of laptops, mobile devices, connected devices, LCDs and healthcare products. According to Nikkei Asian Review, Compal is trying to expand its business beyond its core business of laptops and industrial computers.

The exterior of the Compal electronics, Inc. headquarters is located in Taipei, Taiwan on Monday, October 23, 2006. Compal Electronics Inc., the world's second largest notebook maker, has announced a 2% decrease in third place. Quarterly profit on price reductions and losses on its investments in flat screens and telecommunications. Photographer: Maurice Tsai / Bloomberg News

BLOOMBERG NEWS

Compal is responsible for manufacturing many products that you may have used at one time – Amazon Amazon, Dell and Lenovo computers, Apple iPads, HTC and Sony. Compal achieved a turnover of $ 32.09 billion in 2018, with profits of $ 987.67 million. The main manufacturing plant of the company is located in China. In addition to its headquarters in Taipei, it has offices in South Korea, the United Kingdom, the United States and China.

pack

Hopefully these Apple iPhone ODM profiles will serve as useful background information on some of the lesser known players of the biggest Apple-Qualcomm quarrel, which is expected to reach a crescendo in the coming weeks. Net-net, the first four ODM for Apple iPhone smartphones are very large and sophisticated businesses, generating a turnover of 260 billion dollars. Keep this in mind as you follow the test over the next six weeks. I will follow the lawsuit with interest – stay tuned for additional coverage.

Note: The editors and editors of Moor Insights & Strategy may have contributed to this article.

Disclosure: Moor Insights & Strategy, like all research and analysis companies, provides or has provided paid research, analytical, consulting or advisory services to numerous high technology companies in the industry including:Advanced micro systems, Apstra,ARM Holdings, Bitfusion,Cisco Systems,DellEMC, Diablo Technologies, Echelon, Ericcson, Frame, Gen Z Consortium, Glue Networks, GlobalFoundries,Google(Nest),HPInc.HewlettPackard Enterprise,HuaweiTechnologies,IBM,Circuit Jabil,Intel, Interdigital, Konica Minolta,Lenovo, Linux Foundation, MACOM (Applied Micro), MapBox, Mavenir, mesosphere,Microsoft,National Instruments, NOKIA (Alcatel Lucent), Nortek,NVIDIA, UNOG, OpenStack Foundation, Peraso, Portworx, Protequus, Pure Storage,Qualcomm, Rackspace, Rambus,Red Hat, Samsung Technologies, Silver Peak, SONY, Springpath, Sprint, Stratus Technologies, TensTorrent, Tobii Technology, Synaptics, Verizon Communications, Vidyo, blacksmith, Xilinx, Zebra, who can be quoted in this article.


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