Apple Suspends Business With iPhone Supplier Pegatron for Labor Violations

Apple has suspended its partnership with Pegatron after it discovered that the major iPhone supplier was committing labor violations at a student workers' program.

pegatron logo
Bloomberg reports that several weeks ago Apple found Pegatron had been falsifying paperwork to cover up the violations of Apple's code of conduct for suppliers. Specifically, the Taiwanese manufacturer had misclassified student workers, which allowed some to work nights and overtime. Employees reportedly then "went to extraordinary lengths" to cover up the violations.

"Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major," Apple said in a statement to Bloomberg. "The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms."

Pegatron said the violations took place at its Shanghai and Kunshan campuses in eastern China and that students working night shifts, over-time, and in positions unrelated to their majors were "not in compliance with local rules and regulations." Pegatron has since fired the manager who oversaw the student worker program.

"Upon discovery of this non-compliant activity, we immediately took the student workers off production lines and worked with our customer and third-party experts to make appropriate arrangements for them to return to their homes or schools with proper compensation alongside all necessary support and care," Pegatron said in a statement.

Apple has put Pegatron on probation as a result of the violations, and while supplier's current ‌iPhone‌ business is not expected to be affected, it could lose some ‌iPhone‌ 12 orders to Luxshare next year.

This isn't the first time Pegatron has been accused of worker abuse. A 2013 report by China Labor Watch found evidence of unpaid overtime and underpayment of student workers at Pegatron's Shanghai assembly plant. Other companies in Apple's Chinese-based production chain including Foxconn and Catcher Technology have also flouted local regulations in the past, forcing Apple to tighten standards and audit the companies that manufacture components for its devices.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...

Top Rated Comments

spyguy10709 Avatar
49 months ago
I don't see how


Apple has put Pegatron on probation... business is not expected to be affected
translates into


Suspends Business
Score: 17 Votes (Like | Disagree)
ian87w Avatar
49 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
Wait, isn't this actually a good thing for Apple since they actually put efforts to curtail naughty suppliers? Pegatron made a ton of other stuff, including laptops and components, yet we don't see other brands (I'm looking at you Asus) putting the same scrutiny as Apple.
Score: 14 Votes (Like | Disagree)
citysnaps Avatar
49 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
Maybe you should instead purchase your tech products from companies not using Chinese suppliers and contract manufacturing? Or companies looking the other way when labor violations are discovered with their suppliers/contract manufacturers? And then you wouldn't need to feel gross.

Hat-tip to Apple and Mr. Cook for not looking the other way and instead taking action. I suspect many tech companies simply look the other way out of convenience.
Score: 14 Votes (Like | Disagree)
neuropsychguy Avatar
49 months ago

Shocker, China abusing their workers ?‍♀️
That's not what it looks like. It looks like the students wanted to work more hours or different hours than they were allowed to and a manager helped them do it and falsified paperwork: "Apple said it didn’t find evidence of forced or underage labor in Pegatron’s case".

There are plenty of worker abuses (and forced labor) in China [not to mention this is Taiwan] but this doesn't appear to be one of those cases.
Score: 12 Votes (Like | Disagree)
farewelwilliams Avatar
49 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
apple would gladly sell you a $1.5k entry level iPhone
Score: 10 Votes (Like | Disagree)
roxygal9 Avatar
49 months ago
Shocker, China abusing their workers ?‍♀️
Score: 8 Votes (Like | Disagree)