New iPhone stocks may be limited in the coming months, here’s why

The supply of new iPhone models, including the iPhone 12, may be tight now that two major supply partners of Apple were put on probation. A report from Digitimes cited the reason for Apple’s stern action was because the suppliers were flouting local labour rules.

According to a Bloomberg report in November, Apple’s second largest contract manufacturer Pegatron was found to be flouting local labour rules. This resulted in the supplier being placed on probation, which means it won’t be getting any new business from Apple until its problems are resolved.

Pegatron admitted that the violations took place at its Shanghai and Kunshan campuses in eastern China. The supplier said it had falsified paperwork for a student worker program. Under their program, student workers worked night shifts, overtime and in positions unrelated to their majors. All these practices were not in compliance with local rules and regulations.

The report said that Pegatron and individuals have gone to “extraordinary lengths” to cover up the violations. The supplier claimed upon discovery of its non-compliant activity, it took immediate action to take student workers off production lines and arranged for them to return to their homes or schools with proper compensation.

This is not the first time Pegatron’s student worker program was embroiled in controversy. China Labor Watch issued a report in 2013 alleging there were cases of unpaid overtime and underpayment of student workers at the Pegatron’s Shanghai factory.

Apple’s supplier woes are not limited to China. Recently, a riot broke out at an iPhone assembly plant in Karnataka, southern India that was operated by another supplier Wistron. Contract workers angry over unpaid wages destoryed property, gear and iPhones on 12 December, resulting in millions of dollars in losses to Wistron and forced them to shut down the plant.

Following the incident, the Silicon Valley tech firm said it launched an independent audit after the violence. The company found that Wistron had failed to implement a proper working hour management process. This led to a delay in payment for workers in October and November.

Apple conducted an investigation and found that night shift workers at the plant had complained that they were not paid the amount they were promised by the company. As a result, the Cupertino company banned Wistron from receiving any new business until it can guarantee employees are treated correctly.

The Wistron said it regretted the problems and apologised to its workers. The company promised to improve and strengthen its process for management of labour and pay. Wistron also sacked a top executive who was in charge of its business in India.

We did a quick check on the official Apple online store and found that all iPhone 12 models, including the Pro variants, are still in stock. That being said, if you are looking to get a unit you should definitely make your order now before Apple’s supply chain issues affect iPhone stocks in the country.

Currently, if you are looking to get an iPhone 12 Pro, the estimated shipping time is between two and three weeks. As for the iPhone 12 Pro Max, if you order it online, you can expect it ship within three to five business days.

[SOURCE, 2, 3, 4]

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