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.

Top Rated Comments

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

Top Stories

iphone 6 in hand

Apple Faces Another iPhone Lawsuit Over 'Programmed Obsolescence'

Monday March 1, 2021 6:44 am PST by
Apple faces a new class-action lawsuit that accuses it of deliberately releasing iOS updates that slowly reduce the performance of an iPhone, forcing customers to upgrade their devices. The lawsuit comes from the Portuguese Consumer Protection Agency, Deco Proteste (via Marketeer), which in a statement says that it will proceed with a case against the Cupertino tech giant because it...
PIA23764 RoverNamePlateonMars web

NASA Mars Perseverance Rover Uses Same PowerPC Chipset Found in 1998 G3 iMac

Tuesday March 2, 2021 3:21 am PST by
NASA's Perseverance rover, which recently made history landing on the surface of Mars, is powered by the same processor used in an iMac more than 23 years old. Image Credit: NASA As reported by NewScientist (via Gizmodo), the rover includes the PowerPC 750 processor, the same chip used in the G3 iMac in 1998. The main chipset is the same; however, there are differences between the...
magsafe charging brick feature

Prosser: iPhone 12 MagSafe Battery Pack to Feature Reverse Charging

Monday March 1, 2021 1:18 pm PST by
Apple is working on MagSafe-compatible battery packs that will be compatible with the iPhone 12 models, and leaker Jon Prosser today said on the Genius Bar podcast that one version of the battery pack will feature "reverse charging." According to Prosser, Apple is working on two versions of the battery packs, one that's a standard version and one that's a premium version with reverse...
rosetta 2

Rosetta May Be Removed From M1 Macs in Some Regions on macOS 11.3

Tuesday March 2, 2021 5:20 pm PST by
Installing the upcoming macOS 11.3 software update on an M1 Mac may result in Rosetta 2 being removed in one or more regions around the world. In the third beta of macOS 11.3 seeded to developers for testing today, MacRumors contributor Steve Moser uncovered new strings in the beta's code indicating that "Rosetta will be removed upon installing this update." Another new string reads "Rosetta ...
iphone 12 pro display video

iPhone 13 to Include 1TB Storage Option and LiDAR Across the Board, Says Wedbush Analyst

Monday March 1, 2021 4:00 am PST by
Apple's forthcoming iPhone 13 could include a 1TB storage option for some models and LiDAR Scanners across the entire lineup, according to a report from Wedbush analysts. In a new note to investors, seen by MacRumors, Wedbush analyst Daniel Ives said that initial Asian supply chain checks gave the firm "increased confidence" that Apple's 5G-driven product cycle would extend well into 2022,...
Apple Prefer Lightning Over USB C Feature

iPhone Sticking With Lightning Port Over USB-C for 'Foreseeable Future'

Tuesday March 2, 2021 9:32 am PST by
Apple will retain the Lightning connector on the iPhone for the "foreseeable future," with no intention of switching to USB-C, according to reliable analyst Ming-Chi Kuo. In spite of much of the industry moving toward USB-C, Apple will not be using it to replace the Lightning connector on the iPhone 13, or indeed on any iPhone model for the time being. In a note seen by MacRumors yesterday,...
iphone 12 120hz thumbnail feature

Kuo: iPhone 13 Lineup to Feature Smaller Notch and Larger Batteries, 120Hz Display for Pro Models, and More

Monday March 1, 2021 7:50 am PST by
iPhone 13 models will all feature a smaller notch, while the two Pro models will be equipped with low-power LTPO display technology for a 120Hz refresh rate, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Subscribe to the MacRumors YouTube channel for more videos. Several other sources have previously claimed that some iPhone 13 models will support a 120Hz refresh...
Screen Shot 2021 03 03 at 11

MagSafe Charging Port for iPhone Appears in Apple Patent

Wednesday March 3, 2021 1:30 am PST by
In a newly granted patent, Apple envisions a type of connectivity port using an iteration of its magnetic MagSafe charger to charge an iPhone, potentially paving the way for a future without Lightning. Submitted to the United States Patent and Trademark Office on Tuesday (via Patently Apple), the patent outlines a three-pinned MagSafe charger, similar to the ones found in older MacBook...
apple transfer google photos 1

Apple Launches Service for Transferring iCloud Photos and Videos to Google Photos

Wednesday March 3, 2021 12:04 pm PST by
Apple this week introduced a new service that's designed to make it quick and easy for iCloud users to transfer their stored photos and videos to Google Photos. As outlined in an Apple support document, you can go to Apple's privacy website and sign in to see the "Transfer a copy of your data" option. If you select this and go through all the steps, Apple will transfer your iCloud photos and ...
galaxy s21 iphone 12 pro max front feature2

Kuo: Some 2022 iPhones to Abandon Notch in Favor of 'Punch-Hole' Display

Monday March 1, 2021 8:05 am PST by
At least some 2022 iPhone models will abandon the notch and switch to a "punch-hole display design" instead, similar to Samsung's recent high-end Galaxy smartphones, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Kuo said the hole-punch display design will be adopted by high-end 2022 iPhones at a minimum, and if production yields are good enough, all 2022 iPhone...