Quality Control Crackdown Slows iPhone 5 Production
Due to complaints of scratching, Apple is cracking down on quality control at Foxconn, slowing iPhone 5 production, reports Bloomberg.
The scrapes, which sparked complaints with the iPhone's debut last month, are due to Apple's decision to use a type of aluminum that helps make the smartphone thinner and lighter. Senior Apple managers told executives at Foxconn near the end of September to tighten production standards, said the person, who asked not to be named because the matter was private.
Stricter benchmarks have hampered production of the iPhone 5's anodized aluminum housings, forcing Foxconn's Hon Hai Precision Industry Co. to idle factories, the person said. The slowdown is heightening supply concerns that have cost Apple about $60 billion in market value since the iPhone debut -- a shortcoming of the drive to imbue products with qualities that make them alluring yet more difficult to manufacture.
The crackdown has increased tensions between workers which caused workers at one factory to go on strike, according China Labor Watch. Foxconn denies the strike but has admitted to disputes between workers.