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.

Continue reading Sony and Sharp joint venture hits a rocky patch, Sony cuts off capital

Sony and Sharp joint venture hits a rocky patch, Sony cuts off capital originally appeared on Engadget on Wed, 28 Mar 2012 18:52:00 EDT. Please see our terms for use of feeds.

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Hon Hai Precision Industry Company, Ltd., parent company of original device manufacturer Foxconn, reported huge revenue growth of nearly 50% for the month of January, Taiwan Economic News reports. The manufacturing giant enjoyed performance that beat forecasts last month, with revenue ballooning 47.9% year-on-year to NT$274.6 billion, or approximately $9.1 billion USD. Revenue was down 13.3% sequentially after a big December capped off a hot holiday quarter, but the seasonal decline was expected and well below the average 20% fall off Hon Hai typically sees between December and January. Hon Hai’s nearest competitor Quanta Computer saw revenue grow 2% to NT$78.3 billion in January, and rival Compal Electronics reported a dip of 22% to NT$43.7 billion in January.

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Those who follow technology press closely were disappointed to learn that a revamped iPad rumored to launch this fall — possibly a “Pro” model with a Retina Display — is likely not going to become a reality. Apple never made any official mention of the device, of course, so we have no way of knowing whether or not earlier rumors were accurate. What we can seemingly say, however, is that consumers don’t seem to care. Apple continues to sell iPad 2 tablets as fast as its manufacturing partners can ship them, and a new report from Taiwan Economic News on Friday suggests Apple continued to see unprecedented demand so far this quarter. Read on for more.

Without specifying the source of its report, Taiwan Economic News states Apple’s main iPad supplier, Foxconn-owner Hon Hai Precision Industry Co., has revised its third-quarter iPad 2 shipment estimates up to more than 20 million units. The firm had previously projected that shipments would total 14 million units according to the report.

During its last earnings call, Apple said it sold 9.25 million iPads in its June quarter. It should be noted, however, that iPad 2 supply did still fall short of demand at times in several regions during that period. If shipments of Apple’s popular tablet are finally able to meet or surpass demand, third-quarter iPad sales — which would correspond with Apple’s fourth fiscal quarter — could balloon significantly.

Apple will report its September-quarter earnings next month.

It’s no wonder why Foxconn is considering moving some facilities outside Taiwan and China and into other countries like Brazil. Beyond the potential tax benefits for the manufacturer and its clients, China and Taiwan are finally beginning to address problems surrounding the working conditions its citizens have endured in recent history. Forced wage increases and other recent moves such as Taipei City’s decision on Tuesday to slash the maximum monthly working hours from 312 to 260 for some laborers threaten to spill over into other regions and industries. For Foxconn and parent company Hon Hai Precision Industry Co. Ltd. — which just revealed March revenue of NT$214.9 billion ($7.39 billion USD), up 41% over February — the financial impact of these moves on the bottom line could be massive. It will be interesting to see how Chinese President Hu Jintao receives Brazilian President Dilma Rousseff as they discuss shifting billions of dollars out of China and into Brazil.

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Hon Hai Precision Industry Co. Ltd.-owned Foxconn is considering spending up to $12 billion on new facilities in Brazil that would help the electronics manufacturer’s clients avoid high import taxes on devices shipped to key markets from China and Taiwan. The move would also potentially help the manufacturer avoid some of its rising labor costs in China. The Brazilian government says it is currently studying Foxconn’s plans, and the country’s President Dilma Rousseff is overseas discussing this and other matters with Chinese President Hu Jintao. “You’ve got an ample range of investments that go from $300 to $400 million to $12 billion over 5 to 6 years in the case of Foxconn,” Rousseff told Reuters. “They’re proposing a partnership. They came to us and said we want to invest in Brazil.” Foxconn could start building devices like Apple’s iPad in Brazil by the end of November according to Aloizio Mercadente, Brazil’s science and technology minister.

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The highest ranking official in the Guangdong province of China has called for improved conditions for workers in light of the recent slew of suicides at Hon Hai Precision Manufacturing, also known as Foxconn. Wang Yang, the provincial party secretary in the province where the suicides have taken place, said that the government must work together with the company to "take effective measures to prevent similar tragedies from happening again," While it's still not clear what is causing the deaths, Wang called for measures such as increasing sports and leisure activities for the workers, and improving communication between worker and employer. "Labor unions in private firms should be improved to facilitate better working conditions and more harmonious relations between workers and employers," he said, speaking at a conference in Shenzhen on Saturday, just about one day after Foxconn announced it would increase wages of workers up to 20 percent.

Top Chinese official calls for improved worker conditions in response to Foxconn deaths originally appeared on Engadget on Sun, 30 May 2010 14:47:00 EDT. Please see our terms for use of feeds.

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Hon Hai Precision Industry has announced that it will raise the salaries of employees at its Foxconn factory by about 20 percent. The company claims that the raises were planned for a while and aren't in response to recent suicides. More »

Foxconn - Apple - Suicide - China - Business

If the Wall Street Journal is correct, AT&T’s iPhone monopoly is guaranteed to fizzle out at the end of this summer. According to people “briefed on the matter” a special CDMA version of the iPhone will be made starting this September by Pegatron Technology Corp., a subsidiary of ASUSTeK Computer Inc. To which company will this CDMA device be headed? None other than Verizon Wireless. Yeah. Holy crap. Definitely a blow to AT&T, but on the bright side, it too will be getting a new model, built once again by Hon Hai Precision Industry Co and most likely in June.

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You heard right, folks -- according to the Wall Street Journal, Apple is currently "developing a new iPhone to debut this summer," and as if that weren't enough, it's also "working on another model for US mobile phone operator Verizon Wireless." As of this moment, details about the break are nowhere to be found, but it's not like either tidbit is shocking. This summer will mark the one-year anniversary of the iPhone 3GS, and if the Cupertino-based company keeps with its historical refresh pattern, we're just a few months out from seeing the latest and greatest iPhone. There's also been no shortage of iPhone-to-Verizon rumors over the years, with the latest of 'em happening during the run-up to the iPad's launch.

Update: We're now learning that the "next iPhone is being manufactured by Taiwanese contract manufacturer Hon Hai Precision Industry," which just so happens to be the same outfit responsible for crafting all prior iPhones. That's according to "people briefed on the matter" and sourced by the WSJ. It's also stated that the world's first CDMA iPhone will be manufactured by Pegatron Technology, which we caught just last week dabbling in some of NVIDIA's Tegra 2-based wares. If all goes well, Pegatron could begin mass production of the CDMA iPhone (exact model not disclosed) this September, so it's hard to say if Sprint or Verizon would have access before the all-too-lucrative holiday season. As for quotes on the matter? Most everyone involved wouldn't say a word, but an AT&T spokesman did utter the following: "There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven't seen one yet and only Apple knows when that might occur."

On a week that couldn't possibly get any bigger for Apple, that's exactly what just happened. Everyone suspected that a fourth-generation iPhone was in the works, but having an outlet like the WSJ confirm it just makes the summer that much harder to wait for. There's also the possibility that 2010 will be the final year that AT&T retains its death-grip on the iPhone, but by the sound of this report, it still seems as if the nation's largest GSM carrier may nab exclusive rights on the latest iPhone. We also can't help but wonder about the future of a true 4G iPhone -- will Sprint manage to grab a WiMAX-enabled version? Will Verizon get its grubby paws on an LTE model? We figured only Jobs would know, but now... there might just be someone else out there willing to spill the beans.

[Thanks, Chris]

WSJ: Apple 'developing new iPhone,' plus another for Verizon originally appeared on Engadget on Mon, 29 Mar 2010 17:26:00 EST. Please see our terms for use of feeds.

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An analyst is reporting that "an unspecified production problem at the iPad's manufacturer, Hon Hai Precision, will likely limit the launch region to the US and the number of units available to roughly 300K."

Analysts make poofy, speculative claims that we ignore all the time, but Canccord Adams' Peter Misek here is reporting that there is an actual "unspecified production problem" happening at Foxconn (the prettier name for Taiwanese manufacturer Hon Hai Precision) resulting in a "manufacturing bottleneck." Of course, it's possible he's still wrong, and a million iPads will flow freely later this month (ooo, is it March already?).

But a high-demand, low-supply launch wouldn't be the worst thing in the world either. It certainly wouldn't be unprecedented; Christ knows, Amazon and Nintendo that strategy milked it for years. [AppleInsider]