Taiwan

Apple’s lead manufacturer Foxconn reported a 13 percent rise in net profit to 106.7B new Taiwan dollars (US$3.5B) following record iPhone and iPad sales, reports the WSJ. More than 40 percent of the company’s revenue comes from Apple.

The news comes a few days after Apple supplier Pegatron reported a 22 percent rise in earnings.

Hon Hai’s results were underpinned by demand from Cupertino, Calif.-based Apple, which sold 51 million iPhones in its fiscal first quarter ended Dec. 28, 2013—up 7% from the same period the previous year […]

Apple also said it sold a record 26 million iPads in the quarter, compared with 22.9 million in the year-ago period …

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DigiTimes is claiming that Apple will cease production of the non-Retina version of the 13-inch MacBook Pro this year as it prepares to launch refreshed Retina models toward the end of the year.

Apple is expected to stop production of the 13-inch MacBook Pro in the second half of 2014 and will replace the product line with thinner models equipped with a Retina display. Meanwhile, Intel will offer second-generation ultrabooks in the fourth quarter of 2014, pushing the notebook industry further into the ultra-thin era, according to Taiwan-based supply chain makers … 
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An unconfirmed report in China Times claims that Taiwan-based touch panel manufacturer TPK will be making flexible displays for the iWatch, with mass production expected in the second half of the year.

The report said the iWatch will come equipped with a flexible AMOLED display and 3D protective glass. The rumors also speculated that the iWatch will use silver nanowire touch screen technology developed by TPK in conjunction with Japan-based Nissha Printing.

Both the flexible AMOLED and silver nanowire suggest a curved display, but it should be noted that the China Times does not have the best of track records … 
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A report published in Taiwan’s Economic Daily News, via Mac Otakara, reiterates the flurry of previous reporting that Apple will release two new iPhones this year with larger displays, around 4.7 and 5.6 inches respectively. This has been reported countless times in the past by multiple sources. It also says that Apple is targeting a release in the third-quarter, again unsurprising at this point.

However, the report goes onto say that only the larger of these two phones will feature sapphire-glass. According to this sketchy report, the 4.7 inch model will continue to use Corning’s Gorilla Glass like the current iPhone 5s and 5c.

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Photo: Thomson Reuters

Several former execs at Foxconn have been charged with taking bribes from companies supplying the company with iPhone components, reports the WSJ.

Following a year of investigation, prosecutors said Thursday they have detained a former Foxconn general manager for allegedly taking kickbacks from supply chain partners. Prosecutors said three other former Foxconn employees were released on bail [after being charged] … 
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Earlier this week we told you that Apple had announced an upcoming sale in many of its Asian online stores to celebrate the Chinese Lunar New Year taking place at the end of January. The sales see Apple offering discounts in China, Thailand, Korea, Singapore, Hong Kong, Taiwan, and Malaysia online stores similar to deals on offer for Black Friday in the US and other countries.

This year Apple is offering cash discounts on the usual products— up to $40 off iPads, $100 off Macs, and smaller discounts on iPods and Smart Covers— it’s also offering a rare discount on iPhones at around $50 off both the iPhone 5s and 5c. In addition, a much larger selection of accessories are on sale compared to the company’s Black Friday sale including popular products from Parrot, Apogee, Belkin, LaCie, and Apple.

The Wall Street Journal reports that Taiwan’s Fair Trade Commission has fined Apple approximately US$670,000 for its attempts to influence phone pricing set by distributors and service providers in the region. According to a statement from the commission, Apple was forcing at least three carriers to submit pricing plans for iPhone ahead of offering the devices for sale:

“Through the email correspondence between Apple and these three telecom companies we discovered the companies submit their pricing plans to Apple to be approved or confirmed before the products hit the market,” it said in a statement.

The report adds that Apple could face an additional fine of NT$50 million (around $1.7 million US) if it doesn’t change its current methods of negotiating iPhone pricing plans with carriers:
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Last week, a report from The Wall Street Journal claimed Apple’s much rumored HDTV set is now in the “early stages of testing” with partners Hon Hai Precision and Sharp. Today, we get more details surrounding the rumored product from the Taiwan national news agency’s English language Focus Taiwan. According to the report, citing sources close to Hon Hai Precision Industry Co., the supplier is testing Apple television designs, but the possibility of the product shipping in 2013 is “unlikely”:

Nevertheless, the source said it is unlikely that shipments of the appliances will begin as soon as the end of next year.

While the report from WSJ claimed Sharp was involved in the initial testing of the product with Hon Hai, Focus Taiwan’s source claimed the possibility of Sharp displaying panels for the product is “not high”:

Asked whether the new Apple TV will use display panels produced by Japan’s Sharp Corp., the source said the possibility is not high.

The source also claimed that Apple is looking at displays ranging from 46 inches to 55 inches, meaning the company likely wouldn’t rely on Sharp’s plants best suited for production of 60+ inch panels:
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Turkish website Sosyalmedya reported last month that Apple was putting the country’s national security at risk by releasing high-resolution imagery of sensitive locations in its new Maps app. In that case, the issue was a clear view of a maximum-security prison. A quick comparison to Google’s Maps showed the location was obscured, something Google has been known to do upon request. There were other controversial locations discovered in the Maps app (locations that Google currently blurs), and today a report from The Associated Press noted Apple is being asked by Taiwan to obscure imagery of an early-warning radar station in the country.

Taiwan is asking Apple Inc. to blur a map image of its new $1.4 billion early warning radar station… The 10-storey high radar installation built with U.S. technology is expected to go online later this year. It’s near the Hsinchu Airbase in northern Taiwan.

According to the report, Taiwan Defense Ministry spokesperson David Lo said, “Apple should follow its rival Google in using only low-resolution satellite pictures.” The Associated Press said the facility is located near Hsinchu Airbase in northern Taiwan and will be used for monitoring aircrafts, missiles, and determining speed for targets “coming from as far as western China.”

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According to several local reports, Foxconn’s Terry Gou made some pretty bold statements at Hon Hai Precision’s annual meeting of shareholders on Monday. While there are a few translations, all seem to claim Gou urged customers to wait for the iPhone 5, “saying that the new model will put Samsung’s Galaxy III to shame.” A report from Focus Taiwan quoted China Times:

Gou said he has made it a lifetime goal to defeat Samsung — “a company with a track record of snitching on its competitors.”… He was referring to Samsung’s action in 2010 of snitching on four Taiwanese companies in an investigation by the European Commission on price-fixing in the flat panel industry…Samsung was exempted from the investigation by serving as a “tainted witness.” … Gou also urged consumers to wait for the launch of Apple’s iPhone 5, saying that the new model will put Samsung’s Galaxy III to shame.

Gou also apparently claimed that Foxconn’s Sakai plant “has an exclusive agreement with Corning Inc., an American manufacturer of glass, on large panel supply,” and his “competitors will not be able to secure any such material if they wished to.” We are going to wait to see if Foxconn issues a statement regarding these quotes, because we know a couple of stories in recent months misquoted Gou…
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The ever-sketchy DigiTimes does not have the best reputation when it comes to predicting Apple product launches, but today the publication is reporting Apple OEM Pegatron began receiving orders for a new iPhone and a next-generation 10-inch iPad. It also reported Apple plans to release a 7-inch iPad in August:

Pegatron Technology reportedly has landed orders for a new-generation iPhone to be launched in September and a 10-inch iPad to be launched in the fourth quarter, according to Taiwan-based supply chain makers. Pegatron is currently an OEM for the iPhone 4S and new iPad… A 7-inch iPad, which reportedly will be released in August, will be manufactured by Foxconn Electronics (Hon Hai Precision Industry).

With the release of Apple’s new iPad last March, we find it hard to imagine Apple plans to break its yearly release window with a new 10-inch iPad, in addition to a 7-inch variant in August. We heard many rumors lately about a 7-inch or 7.85-inch tablet, indicating Apple could be experimenting with smaller screen sizes. In April, a translated report from a Chinese publication claimed Apple was prepping 7.85-inch iPad minis to launch in Q3 for $250 to $300, but we have not heard anything concrete on Apple’s plans to release a 7-inch tablet. As for iPhone, we are still expecting an October launch at this point.

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[youtube=http://www.youtube.com/watch?v=pS9sUm5Y0sg]
last year’s 

The iPhone maker is many things to many people and it is easy to overlook Apple’s powerful marketing amidst the popularity of its gadgets. Yet, the two are inseparably intertwined. No wonder well-known names in business are (again) taking cues from Apple’s marketing cookbook, including United States specialty retailer of consumer electronics Best Buy that uncharacteristically decided to break away from the usual Super Bowl advertising featuring celebrities, which seems to be norm these days.

Instead, its new approach calls for celebrating technology innovators, a concept Apple popularized back in 1997 with the “Think Different” campaign. According to Bloomberg, the retailer opted to feature Silicon Valley inventors, such as Instagram cofounder Kevin Systrom and camera phone pioneer Philippe Kahn who will help bring home the message at Sunday’s big game. From the mouth of Best Buy’s Marketing Chief Drew Panayiotou:

Big brands like to hire celebrities. We looked at everyone from George Clooney to Stephen Colbert. We believe the inventors are more than enough. I give those 125 million viewers a lot of credit. I think they’ll appreciate the story. […] They may not be at the same level as Steve Jobs, but they created some amazing stuff.

Eagle-eyed readers could point out that the retailer last holiday season aired Apple-focused adverts promoting its store-within-a-store displays, seen below. However, Best Buy’s latest creative concept marks a departure from its past Super Bowl campaigns that tapped celebrities, such as heavy metal rocker Ozzy Osbourne and teen heartthrob Justin Bieber. Meanwhile, a Taiwanese vendor is treading the fine line between originality and a display of disrespectfulness by featuring a Steve Jobs imitator to drum up excitement for its upcoming Android slab. Check it out that commercial in a clip included right after the break.

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Update: The stores appear to be back online now, and while the China/Hong Kong, Taiwan, Singapore, Malaysia, Philippines, and Thailand stores have access to Red Friday deals, the others don’t. As for discounts, most products, including iPads, MacBooks, and iMacs appear to be on sale for in between 5% and 10% off. For everyone else, 9to5 readers can still get some of the best prices on Macs in the U.S. through our discount code at MacMall.

While we have not confirmed the exact reason, it looks like around 13 Apple online stores worldwide are currently down. Among them: China, Australia, Japan, Korea, Taiwan, New Zealand, Hong Kong, Singapore, Malaysia, Philippines, Thailand, and Vietnam.

There is a good possibility Apple is updating these websites to reflect the ‘Year of the Dragon’ Jan. 6 Red Friday shopping event that is expected to land in China/Hong Kong, Taiwan, Singapore, Malaysia, Philippines, Thailand, and possibly the other countries with online stores currently down. We will keep you posted if we notice any changes when they come back online.

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Unlocked iPhone 4S is priced out of reach of average folks in India.

Currently available in 44 countries, Apple’s iPhone 4S is patiently awaited in 26 additional territories as Apple makes good on its promise to have the device available in over 70 markets and on 100 carriers before end of the year. iPhone 4S has been well received in Japan and Singapore and pre-orders sold out in Hong Kong in 10 minutes, but reportedly not so much in South Korea…
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