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Apple's Cheap Iphone Venture Finally Exposed By China

By Expert Author: Jennifer Lewis

The controversy and suspense over Apple developing a new and a cheaper version of the iPhone has been finally brought to halt by the latest report released by China Labour Watch Group. According to this report, one of Apple's China based suppliers, Pegatron is found violating labour laws on a very large basis. Pegatron is a China-based company helping Apple by assembling its iPhones and iPads. This company was found violating labour laws repeatedly and not adhering to the code of conduct meant for the employees. It was not only breaching the rules made by the Chinese government but also ignoring Apple's own social responsibility code of conduct. The workers employed at this company were highly underpaid and over-worked. This report further revealed that this company has employed quite a healthy number of under-aged workers as well. Another fact revealed by this report was that a majority of workers working with this firm are not aware of their rights and laws being violated. In the context of plastic body Apple iPhone, this report states that the workers in Shanghai and Taiwan factories are working tiresomely for long hours to meet the deadline of Apple less expensive iPhone's release.

According to the experts, Apple's less expensive version of the iPhone will never match up market's expectations. For instance, iPad mini is available in the market for around USD 329, whereas Kindle Fire HD and the Nexus 7 with the same features are available for around USD 220-250. This report has more to say about Apple's Chinese partner Pegatron. It reveals that this company has been associated with Apple for a long time and has undertaken projects of assembling iPhone 4, iPhones 4S, iPhone 5 and now less expensive plastic body iPhones. Some of Pegatron's major machineries and equipments like microcomputers and detection hosts, used for assembling iPhones are supplied by Apple itself.

The researchers had a few words with the employees of Pegatron about less expensive iPhones and their plastic back covers. They informed that the plastic cover on the back of the iPhone would have a protective film to ensure that the cover stays scratchproof. However, they did not reveal the date of the release of this iPhone's and mostly said that it will hit global markets very soon.

If the report created by TheVerge is taken into consideration, we will observe that the less expensive version of the iPhone can be released anytime now and suppliers are fully prepared for its launch anytime in near future. However, my predictions say that Apple does not look in a hurry to launch its less expensive iPhone and thus, its launch could take more time than what we all are anticipating. What I also see is that Apple is not willing to take any risk by launching its next regular version of the iPhone and the cheaper version of iPhone together or even in a gap of 2-3 months.


According to me, this report has clearly shown the strategy used by Pegatron to win this order from Apple. It used every ploy and offered as low prise as possible. Then, they engaged in labour's cost cutting, violating labour laws and even breaching Apple's code of conduct. While narrating the drawbacks of the strategy adopted by Pegatron, experts said that although, Apple will earn bigger profits and take control over the bigger market share, but it will deteriorate the value or the cost of the labour involved in its supply chain. The Pegatron has a labour strength of 70,000 and at present, everyone is busy working on the project handed over to them by the Apple.

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