Apple Reports on Assemblers, Suppliers, and Child Labor

In a step toward greater transparency, Apple (NASDAQ: AAPL  ) has released a list of its 17 final assembly facilities. Since journalists uncovered numerous alleged labor violations at manufacturing facilities supplying Apple in early 2012, Apple has been working to improve its corporate image and upgrade conditions along its supply chain. The latest alleged labor violation in connection with Apple stemmed from one of its suppliers using unpaid "interns" to speed up iPhone 5 manufacturing.

Underage labor is a hot-button issue and in a recently released 2013 Supplier Responsibility progress report [link opens in PDF], Apple writes: " Our approach to underage labor is clear: We don't tolerate it, and we're working to eradicate it from our industry." As evidence of this stance, Apple says it severed ties with one of its suppliers when auditors found 74 cases of workers under age 16. Apple also says it notified provincial governments where the supplier and its labor agency operate, resulting in fines and license suspensions.

The list of 17 final assembly facilities, including the name and location of each company and the products it works on, shows 14 are in China, one in Brazil, one in Ireland, and one in the United States. The one in Ireland is Apple itself; the one in the U.S. is Quanta Computer in Fremont, Calif. The one in Brazil is listed as Hon Hai Precision Industry Co. (Foxconn) in Sao Paulo.

Apple also released a list of its top 200 suppliers [link opens in PDF] representing 97% of procurement expenditures.


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