Zero-Covid policy is costing China its role as the world’s workshop

Beijing’s endless lockdowns are causing shortages for western firms such as Apple, and it may not be long before they move their supply chains elsewhere

The anti-lockdown unrest gripping China has forced the authorities in Beijing to respond by easing some restrictions in big manufacturing centres, as they map out a “new stage and mission” in the country’s deeply unpopular zero-Covid policy.

There are concerns that more freedom of movement could allow the virus to rip through a population where immunity is lower than in the west. Those health risks mean the “world’s workshop” is heading for a difficult winter, casting a shadow over the prospects for international trade.

Continue reading...

Police beat protesting iPhone workers as Covid cases hit record high in China

Officers kick and hit staff at Foxconn plant in Zhengzhou, with Apple warning of iPhone 14 delivery delays

Police in China have dealt out beatings to workers protesting over working conditions and pay at the biggest factory for iPhones, as the country’s Covid-19 cases hit a new daily high.

Videos online showed thousands of people in masks facing rows of police in white protective suits with plastic riot shields. Police kicked and hit a protester with clubs after he grabbed a metal pole that had been used to strike him. People who made the footage said it was filmed at the site.

Continue reading...

Protests break out at Covid-hit iPhone factory in China

Social media videos showed large crowds clashing with hazmat-suited officials amid rising worker discontent at the Foxconn plant

Hundreds of workers joined protests at Foxconn‘s huge iPhone plant in China, with some men smashing surveillance cameras and windows, footage uploaded on social media showed.

The rare scenes of open dissent in China mark an escalation of unrest at the factory in Zhengzhou city that has come to symbolise a dangerous buildup in frustration with the country’s ultra-harsh Covid rules as well as inept handling of the situation by the world’s largest contract manufacturer.

The trigger for the protests, which began early on Wednesday, appeared to be a plan to delay bonus payments, many of the demonstrators said on livestream feeds. The videos could not be immediately verified by Reuters.

“Give us our pay!” chanted workers who were surrounded by people in full hazmat suits, some carrying batons, according to footage from one video. Other footage showed teargas being deployed and workers taking down quarantine barriers. Some workers had complained they were forced to share dormitories with colleagues who had tested positive for Covid-19.

Foxconn said in a statement it had fulfilled its payment contracts and that reports of infected staff living on campus with new recruits were untrue.

“Regarding any violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again,” the company added.

A source familiar with the situation in Zhengzhou said production at the plant was unaffected by the worker unrest and output remained normal.

Reuters has previously reported that Foxconn aimed to resume full production at the Zhengzhou iPhone plant by the second half of November.

While the latest unrest has added “uncertainties” to the target, the source said the company was still working hard to hit it, adding that “only a portion” of the new recruits took part in the unrest.

A second source familiar with the matter, however, said Foxconn was unlikely to hit the target, pointing to disruptions triggered by the unrest, particularly affecting new recruits who were hired to bridge the gap in the workforce.

“Originally, we were trying to see if the new recruits could go online by the end of November. But with the unrest, it’s certain that we can’t resume normal production by the month-end.”

Discontent over strict quarantine rules, the company’s inability to stamp out outbreaks and poor conditions including shortages of food had caused workers to flee the factory campus since the Apple supplier imposed a so-called closed-loop system at the world’s biggest iPhone plant in late October.

Continue reading...

Apple limits AirDrop on iPhones in China after filesharing feature was used by protesters

The AirDrop function was being used to anonymously share digital leaflets with strangers, but has now been restricted on iPhones in China

Apple has limited filesharing features on iPhones in China, a month after reports that anti-government protesters were using the function to share digital leaflets with strangers.

Under the update to the AirDrop function released on Thursday, iPhone users in China can only opt in to receive files from non contacts during a 10-minute window before it automatically shuts off. The feature did not previously have a time limit.

Continue reading...

Apple warns iPhone shipments will be delayed due to Covid restrictions at Foxconn plant

Tech company says customers will experience longer wait times as the plant in China is operating at reduced capacity

Apple has said it expects fewer iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as Covid-19 restrictions temporarily disrupt production at an assembly facility in Zhengzhou, China.

“The facility is currently operating at significantly reduced capacity,” Apple said in a statement. “Customers will experience longer wait times to receive their new products.”

Continue reading...

Supply fears as China lockdown hits world’s largest iPhone factory

Foxconn plant in Zhengzhou, from which many workers have fled, now under seven-day Covid lockdown

Chinese authorities have announced a seven-day coronavirus lockdown in the area around the world’s largest iPhone factory, stoking concern that production will be severely curtailed ahead of the Christmas period.

Foxconn’s plant in Zhengzhou, which employs about 200,000 people, produces the majority of Apple’s new phones, including the new iPhone 14.

Continue reading...

Apple weathers tech industry storm to top profit and revenue targets

The company reported an 8% increase of earnings at $90.1bn beating Wall Street expectations with net profit of $1.29 a share

Apple’s quarterly earnings on Thursday revealed that the company is weathering the ongoing tech downturn better than its competitors, reporting revenue and profit that topped Wall Street targets.

Revenue rose 8% this quarter to $90.1bn, above estimates of $88.9bn, while net profit was $1.29 a share, topping with the average analyst estimate of $1.27 a share, according to data from the market research firm Refinitiv.

Continue reading...

EU votes to force all phones to use same charger by 2024

Apple will be forced to change charger after EU votes to use USB-C connectors

The European parliament has voted to introduce a single charging port for mobile phones, tablets and cameras by 2024 in a move that presents difficulties for Apple, whose iPhones use a different power connector.

The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple to change its charging port for its devices.

Continue reading...

Apple shifts some iPhone 14 production from China to India

Move taken against background of China’s Covid lockdowns and geopolitical tensions between Beijing and Washington

Apple has begun making iPhone 14s in India, as it moves some production away from China for the first time against a backdrop of Chinese Covid-19 pandemic lockdowns and geopolitical tensions between the US and the country’s communist government.

A production line in Chennai has begun operation, assembling the iPhone 14 for the domestic Indian market. The move, which marks the first time the company has assembled iPhones outside of China in the same year they were released, is part of a plan to disentangle its manufacturing operations from the Chinese state.

Continue reading...

Indigenous leaders urge businesses and banks to stop supporting deforestation

Amazon ecosystem is on verge of collapse, leaders tell brands such as Apple and Tesla as UN gathers in New York

Indigenous leaders from the Amazon have implored major western brands and banks to stop supporting the ongoing destruction of the vital rainforest through mining, oil drilling and logging, warning that the ecosystem is on the brink of a disastrous collapse.

Representatives of Indigenous peoples from across the Amazon region have descended upon New York this week to press governments and businesses, gathered in the city for climate and United Nations gatherings, to stem the flow of finance to activities that are polluting and deforesting large areas of the rainforest.

Continue reading...

Starbucks and Amazon accused of dragging their feet on union contracts

After successful unionization drives, experts say companies will ‘fight to the end’ to prevent the next step

Over the past year, workers at Starbucks, Amazon, Trader Joe’s and Apple have all achieved historic, hard-won union victories, but now many of these newly unionized workers fear they might face an even bigger challenge: negotiating a first union contract.

Exhibit A for that challenge is the slow pace of progress at Starbucks. Unions have won elections at more than 220 stores. Many baristas are upset that Starbucks has begun negotiations with workers at only three of them.

Continue reading...

Apple security flaw ‘actively exploited’ by hackers to fully control devices

The vulnerability has affected various models of the iPhone, iPad and Mac, with experts advising updating products to secure them

Apple disclosed serious security vulnerabilities for iPhones, iPads and Macs that could potentially allow attackers to take complete control of these devices on Wednesday.

The company said it is “aware of a report that this issue may have been actively exploited”.

Continue reading...

Saudi snitching app appears to have been used against jailed Leeds student

‘Terrifying tool’ under scrutiny as Salma al-Shehab’s tweets suggest widely available phone app was used to report her

The Saudi woman who was sentenced to 34 years in prison for a tweet appears to have been denounced to Saudi authorities through a crime-reporting app that users in the kingdom can download to Apple and Android phones.

A review of Leeds PhD student Salma al-Shehab’s tweets and interactions shows she was messaged by a person using a Saudi account on 15 November, 2020 after she posted a mildly critical tweet in response to a Saudi government post about a new public transportation contract.

Continue reading...

Tech company earnings reports expected to bring a flush of bad news

Some US firms have announced hiring slowdowns and layoffs in recent weeks amid fears of recession

As top tech companies prepare to release their quarterly earnings reports starting next week, investors are bracing for bad news.

Several US tech companies have announced hiring slowdowns and layoffs in recent weeks, and the difficulties are expected to continue. “It’s not a great time for tech in general,” said Paul Verna, an analyst at Insider Intelligence, a market analysis firm. “There is no question that companies are going to be spending less, cutting back budgets, and maybe implementing hiring freezes. None of that is good news for the next quarter.”

Continue reading...

Apple workers in Maryland vote to join union, a first for the tech giant in US

Move comes as unionization efforts gain momentum across country, including at Amazon and Starbucks

Apple Store workers in Maryland have voted to join a union, becoming the tech giant’s first retail employees to join a labour-force movement as part of a wider trend across US retail, service and tech industries.

Workers voted to unionise on a nearly two-to-one margin and the result, announced on Saturday by the National Labor Relations Board, provides a foothold for a budding movement among Apple retail employees who want a greater voice over wages and policies pertaining to the ongoing Covid-19 pandemic.

Reuters and Associated Press contributed to this report

Continue reading...

Claim for £750m against Apple launched alleging battery ‘throttling’

Consumer champion Justin Gutmann alleges older iPhones made slower to cope with software updates

A consumer champion has launched a more than £750m legal claim against Apple, linked to an incident in 2017 relating to a power management tool on older iPhones.

Justin Gutmann has accused the tech giant of slowing down the performance of iPhone handsets – a process known as “throttling” – by hiding a power management tool in software updates to combat performance issues and stop older devices from shutting down suddenly.

Continue reading...

Meta asks to be spared tighter rules in Australia, saying iPhone’s tracking blocker is hurting business

Company tells consumer watchdog it is set to lose $10bn this year in wake of Apple iOS feature hampering ability to collect user data

Meta says Apple’s decision to allow users to stop apps tracking them on their phones has diminished Facebook’s advertising market power, and therefore the social media giant should not face further regulation in Australia.

In mid-2021 Apple rolled out a new feature in iOS 14.5 called “app tracking transparency” which asks for users’ consent before an app can track their activity across websites and apps, and allows users to opt out of the tracking at any time.

Continue reading...

Saudi Aramco overtakes Apple as world’s most valuable company

Soaring commodity prices swell oil giant’s profits as tech stock slide pegs back iPhone maker

Apple has lost its crown as the world’s most valuable company to the oil giant Saudi Aramco, as soaring commodity prices swell profits at energy companies and technology stocks continue to slide.

In a sign that the old economy is reasserting itself over the new this year, Aramco eclipsed Apple on Wednesday night amid the ongoing rout on Wall Street.

Continue reading...

Apple reports positive results despite shortages and economic fallout

The tech giant saw nearly $3tn in profits despite challenges created by the Russia-Ukraine war and the global supply chain

Apple on Thursday reported strong quarterly results despite supply shortages, but warned that its growth slowdown is likely to deepen. The company said it’s still struggling to get enough chips to meet demand and is contending with Covid-related shutdowns at factories in China that make iPhones and other products.

Although initial results for the January-March period topped analysts’ projections, the good news was quickly eclipsed when management warned of trouble ahead during a conference call.

Continue reading...

iPhone maker Pegatron halts Shanghai production due to Covid lockdown

Operations stopped in Chinese cities of Shanghai and Kunshan as global supply chains feel pinch of Beijing's zero-Covid measures

Key iPhone maker Pegatron has halted operations at two subsidiaries in the Chinese cities of Shanghai and Kunshan, as global supply chains feel the pinch of Beijing’s strict zero-Covid measures.

The business hub of Shanghai has become the heart of China’s biggest Covid-19 outbreak since the virus surfaced more than two years ago.

Continue reading...