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

iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Apple Wallet ID Illinois

iPhone Driver's License Feature Launching in Illinois

Tuesday November 18, 2025 8:47 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting this Wednesday, November 19, the feature will be available to residents of Illinois. The announcement confirmed that the...
iPhone 17 Pro and Air N1 Feature

iPhone 17 vs. iPhone 16 Wi-Fi Speeds: New Study Reveals the Winner

Tuesday November 18, 2025 10:53 am PST by
A new study has revealed that the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air achieve significantly faster average Wi-Fi speeds compared to the iPhone 16 series, thanks to Apple's custom-designed N1 chip. The study was conducted by Ookla, the company behind the popular Speedtest website and app. It said the results are based on global, crowdsourced Speedtest user data...
macbook black friday

The Best Early Black Friday Mac Deals

Tuesday November 18, 2025 7:32 am PST by
We're getting closer to Black Friday, which lands next week on Friday, November 28. In the lead-up to the shopping holiday, we're tracking a few lowest-ever prices on Apple's most popular Macs, including the M4 MacBook Air and brand new M5 MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
Magic Keyboard Touch ID Feature

Apple Releases New Firmware for 140W USB-C Power Adapter, Magic Keyboard and Magic Trackpad

Tuesday November 18, 2025 1:05 pm PST by
Apple today released updated firmware for several accessories, including the 140W USB-C Power Adapter, the Magic Trackpad 2, the Magic Trackpad USB-C, the Magic Keyboard with Touch ID, and the Magic Keyboard with Touch ID and Numeric Keypad. There is no word on what's included in the updated firmware at this time, but it could offer performance improvements and security updates. Accessory...
best early black friday deals

Best Black Friday Apple Deals Live Now - Save on AirPods, iPads, and Apple Watches

Saturday November 15, 2025 1:45 pm PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
Apple Sports App Preview Feature

Apple Sports App on iPhone Now Available in More European Countries

Monday November 17, 2025 6:27 am PST by
The free Apple Sports app on the iPhone was released in additional European countries today, including Belgium, Croatia, Czechia, the Netherlands, Luxembourg, Poland, Hungary, Denmark, Finland, Norway, Sweden, Switzerland, Slovakia, Slovenia, Serbia, Greece, Estonia, Latvia, Romania, Ukraine, and others. The app was already available in the U.S., the U.K., Canada, Austria, France, Germany,...

Top Rated Comments

spyguy10709 Avatar
66 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
66 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
66 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
66 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
66 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
66 months ago
Shocker, China abusing their workers ?‍♀️
Score: 8 Votes (Like | Disagree)