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WSJ: Apple prepares record number of 80 million 4.7-inch and 5.5-inch iPhones for production

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The Wall Street Journal reports that Apple has told its suppliers to prepare to build a record number of next-gen iPhones. According to the Journal, Apple is looking to produce 70-80 million units by December 30th. As reported earlier this month, both the 4.7-inch and the larger 5.5-inch models of the upcoming iPhone are expected to enter mass production in the coming weeks.

This is a big jump from the previous iPhone models. Last year the company only ordered 50-60 million of the iPhone 5s and 5c. Manufacturing parter Foxconn recently hired as many as 100,000 new workers to help meet the increased demand, and even ordered a custom line of robotic equipment to facilitate the production of iPhone 6.


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Can’t wait until September? The Goophone i6 is out now, and it will fool your friends

[youtube=https://www.youtube.com/watch?v=1Z2C8ED4piM]

The iPhone 6 may not actually exist yet, but that hasn’t stopped Chinese clone manufacturers releasing functional knock-offs based on the leaks and mockups. Now Goophone – the company which previously made an extremely close copy of the iPhone 5s – has joined the party with the WICO i6.

As ever with Goophone, the quality of both the casing and the iOS-themed Android skin is certainly good enough to fool the casual observer – almost worth getting one to prank people …

As for the real thing, production of the 4.7-inch model is expected to start next week, and the 5.5-inch version the second week in August, Foxconn hiring 100,000 new workers for the assembly process.

There’s been a steady stream of claimed leaked parts from the phone, including a scratch test of a sapphire display; both photos and video of the back of the phone; the LCD bracket; the chassis; a ‘more durable’ Touch ID sensor‘; and a battery and camera sensor.

4.7-inch iPhone production to start third week of July, 5.5-inch second week of August as Foxconn confirms hiring of 100K workers

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Apple is set to begin mass production of the next-generation iPhone next week, the Economic Daily reported today. According to the report, the smaller 4.7-inch model will enter production in the third week of July, while the larger 5.5-inch variant will enter production in the second week of August. The bigger of the two models is said to be facing production setbacks that could lead to a much later launch date than its smaller cousin.

iPhone manufacturer Foxconn added some credence to the timing of the production rumors by officially confirming plans originally reported earlier this month to hire 100,000 new workers to build the upcoming device. Sapphire crystal for the displays (which we’ve recently seen in multiple videos) has been in production at Apple’s Mesa, AZ plant for several months now in preparation for mass production.


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Foxconn prepares to replace workers with robots in iPhone 6 assembly process

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Photo: Thomson Reuters

Photo: Thomson Reuters

Foxconn is preparing to enhance its assembly process with a new line of robots, the CEO of the iPhone manufacturer’s parent company said during a shareholder meeting. According to the executive, Apple will be the first company to reap the benefits of the new process, likely indicating that the iPhone 6 will be the first phone to be produced by the new machines.

Each of the planned 10,000 robots will cost the company between $20,000 and $25,000, and will be capable of churning out 300,000 smartphones on average. The machines, which are said to be in the final testing stages now, won’t be available for sale to other companies, according to CEO Terry Gou, as Foxconn will likely not have enough to meet its own needs.


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Foxconn reportedly hiring 100,000 new workers to assist with iPhone 6 production

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Apple iPhone 6 (Mockup) 43

iPhone manufacturing partner Foxconn is in the process of hiring 100,000 new workers in order to ramp up iPhone 6 production, according to a new report from Taiwanese Economic Daily. Another iPhone manufacturer, Pegatron, is also said to be ramping up hiring in anticipation of the new smartphone.

Hiring frenzies like this are not uncommon as new iPhone models prepare to enter production, but in the case of Foxconn the figure represents a new record number of jobs.

According to the report, Foxconn is reportedly responsible for producing 70% of iPhone 6 orders. The report claims that the device will enter mass production in July. Leaked dummies have already given us an idea of what the phone will look like, including the LCD for the rumored 5.5-inch model.


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Latest unverified photos from Weibo claim to show iPhone 6 schematics, production tools

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A new batch of photos appearing on the Weibo social network claim to show new production schematics and die for manufacturing the body of the iPhone 6 inside a Foxoconn facility, as noted by GforGames. A few of the photos (below) definitely show some sort of technical design documents, though we can’t be sure what they show as they are both incredibly technical and written in Chinese.

The molds, as seen above, definitely appear to be designed to produce a smartphone, but there is no confirmation that these will be used for the iPhone 6 as opposed to a phone from some other manufacturer. Apple is rumored to be working on two different models of the iPhone 6 with different screen sizes.  If they are designed for the next iPhone, these molds could be for the 4.7″ or 5.5″ models.


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Foxconn gives a shoutout to Apple products after profits climb 13 percent

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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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Someone is happy with iPhone 5c sales: Pegatron posts a 22 percent rise in earnings

China Foxconn

Photo: Associated Press

Pegatron, Apple’s main supplier for the iPhone 5c, has reported 22 percent year-on-year earnings growth, citing mobile products as the main source of the increase. KGI Securities analyst Angela Hsiang told the WSJ that Apple provides 40 percent of the company’s business.

Pegatron has long been a secondary iPhone supplier, but was last year given the lead in production of the iPhone 5c, which it manufactures along with the iPad Mini. The company did not provide any breakdown in earnings between the two products.

Although the earnings increase is a big rise, the company’s operating margin is testament to the tough deals Apple strikes with its suppliers: Pegatron’s operating margin increased from 1.6 percent to 1.9 percent.

Pegatron is expected to share production of the iPhone 6 with Apple’s lead supplier Foxconn.

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Opening of first Apple Store in Brazil draws large crowds despite high prices

[youtube=http://www.youtube.com/watch?v=M-CAut6hkPs]

Around 1,700 people attended the opening of Apple’s first retail store in Brazil, in the popular Village Mall in a suburb of Rio de Janeiro – despite steep import tariffs meaning prices 80 percent higher than in the USA.

As the LA Times observes, a 16GB iPhone 5s sells for the equivalent of $1,174 in Brazil, compared to $649 in the U.S.

We first told you the store was planned all the way back in 2012, learning the the approximate opening date in October last year. Apple began teasing the opening last month before announcing the opening date.

To avoid the high tariffs imposed on imported goods, Apple has been working with Foxconn since 2011 to set up manufacturing or assembly plants in the country.

Apple’s supplier responsibility report highlights progress on working conditions, boosts focus on environment

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Apple’s eighth annual Supplier Responsibility Progress Report highlights the progress made on reducing child labor and enforcing working hour limits, and shows a significant increase in the environmental standards Apple’s suppliers are expected to meet.

The number of cases of underage workers fell from 106 last year to 11 this year. Compliance with Apple’s requirement of a maximum working week of 60 hours hit 95 percent, with 97 percent meeting the requirement of at least one day off a week. Apple reported that the average working week of a supply chain employee was less than 50 hours … 
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Future iPhones could be built by Google robots on Foxconn production lines

robots

In what would be a rather amusing twist, future iPhones could be built by Google robots as Google’s robotics division assists Foxconn to “speed up robot deployment” at its factories.

The WSJ reports that Foxconn was looking for assistance in automating its production lines, while Google is aiming to introduce robots to manufacturing processes that have so far been largely manual – electronics assembly being a key example. It takes around 600 people to make each iPhone.

Foxconn has been working with former Android executive Andy Rubin since last year to carry out the U.S. company’s vision for robotics.

To speed up robot deployment at its own factories, Foxconn Chairman Terry Gou met with Rubin in Taipei recently and they discussed new robotic technologies, they said.

At the meeting, Gou expressed excitement over new automation technologies demonstrated by Rubin, they said. Rubin also asked Gou to help integrate a technology company that Google is acquiring as Foxconn’s strength lies in mechanical engineering.

Google has acquired eight robotics companies over the course of the past year, and is believed to have ambitions to create a robotic operating system that would be to manufacturing what Android is to smartphones. Foxconn is looking to reduce operating costs and boost efficiency.

“Foxconn needs Google’s help to step up automation at its factories as the company has the lowest sales per employee among the contract makers, given its large workforce,” said Wanli Wang, an analyst at CIMB Securities.

Apple aggressively pushing to take Arizona sapphire plant live in February for ‘critical’ product component

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In November of last year, Apple announced that it would be opening up a new manufacturing plant in Mesa, Arizona. Since that time, little information has come out about the plant except that it would be utilized to manufacture sapphire crystal for future Apple devices. The plant will be operated by Apple in tandem with GT Advanced Technologies. Earlier this year, we learned via (now removed) Apple job listings that the plant would involve components for future iPhone and iPod product lines.

Now, we have tracked down documents (with the help of analyst Matt Margolis) showing correspondence between U.S. Foreign Trade Zone officials and Apple’s Deputy Director of Global Trade Compliance. The documents were made public today by the Foreign Trade Zones Board. The papers indicate the materials Apple will utilize to manufacture sapphire, share details about Apple’s “aggressive” plan to take the facility live, and provide a description of how the sapphire will be used in future Apple products…


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Foxconn execs charged with taking bribes to award iPhone supply contracts

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Photo: Thomson Reuters

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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Tim Cook calls China Mobile launch ‘a beginning’ as Chairman says ‘multi-million’ iPhones ordered

Ive at iPhone 5 event (Getty Images)

(Image via Getty Images)

Ahead of the launch of the iPhone on China Mobile on January 17th, Apple CEO Tim Cook sat down with the Wall Street Journal and other publications for a brief interview. Cook hints that this iPhone deal is only the beginning of a longer-term partnership between Apple and China’s largest mobile carrier:

Speaking in a small media briefing to Chinese media and The Wall Street Journal, Apple Chief Executive Tim Cook said he is “incredibly optimistic” about the outcome of the cooperation with the Chinese carrier.

“We’ve gotten to know each other….today is a beginning, and I think there are lots more things our companies can do together in the future,” Mr. Cook said.

Cook is likely referring to future generations of the iPhone, and other products such as the iPad, appearing on China Mobile’s network in the future. Cook also shares that half a million of the App Store developers are from China:

Mr. Cook said Apple wants to reach as many Chinese consumers as possible by offering iPhones through China Mobile, and added that the country has more than half a million people writing apps for the U.S. company’s iOS operating system.

“Apple has always been about making the best products, not the most products, so that’s always our North Star and that’s not going to change ever,” said Mr. Cook.

“Multi-millions” of iPhones have already been pre-ordered through China Mobile, according to a statement from China Mobile’s Chairman in the same interview. Earlier today, the WSJ reported that over one million iPhone 5s units were shipped from Foxconn to China Mobile. 


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Report: Apple ships 1.4 million iPhone 5s units to China Mobile ahead of Jan. 17 launch

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The Wall Street Journal reports that Apple has shipped approximately 1.4 million iPhone 5S units to China Mobile in preparation of the carrier’s iPhone launch on Jan. 17. The report notes it likely doesn’t present sales for the full month of January with preorders having kicked off under three weeks ago, but it is a good indication of how many new iPhone customers Apple could potentially get on a monthly basis through the deal:

“Shipping one million or more iPhones to a single carrier per month is substantial. But we have limited visibility beyond this month as Apple hasn’t informed Foxconn of  the volume for the next shipment to China Mobile,” said the person.

Apple finally made things official last month when it announced in a press release that it had struck a deal with China Mobile to begin selling the iPhone 5s and 5c, marking the first time the iPhone would be sold through the carrier’s retail stores. China Mobile, the world’s largest carrier with over 760 million subscribers, started taking preorders for the device on December 25 following Apple’s announcement. No word on estimates for iPhone 5c shipments, but China Mobile is set to begin selling that device too starting Friday.

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Pegatron will make half of iPhone 6 supplies, says sketchy rumor

iPhone 6 concept by Nikola Cirkovic

iPhone 6 concept by Nikola Cirkovic

Pegatron, which currently makes the iPhone 5c and iPad mini, is said to be gearing up to make around half of the production run of the iPhone 6 expected to be launched in the fall. It’s a pretty sketchy rumor, based on an anonymous source cited by Taiwanese site Liberty Times, but it is a plausible one at least.

While Apple has so far relied on Foxconn for the bulk of its manufacturing, it’s no secret that supply-chain maestro Tim Cook has been keen to diversify manufacturing in order to reduce risks, a desire reportedly intensified by quality-control issues at Foxconn. As of last August, work for Apple made up 27 percent of Pegatron’s turnover.

The iPhone 6 is, of course, simply the subject of speculation at present. Rumors so far suggest that the iPhone 6 will have a larger screen (possibly in two sizes, though I remain skeptical about that personally), something our own poll suggested would be popular. A completely unverified pair of photos claims the new phone will be slimmer.

It’s also been said that Apple will stick with an 8MP camera, focusing its attentions on low-light and dynamic range rather than the pixel count. Plus, of course, we have the traditional annual rumor that Apple will shift its chip production from Samsung to TSMC.

While nothing is actually known, there are plenty of concept images around to keep us entertained.

Poll: Would you buy a 13-inch iPad?

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With further rumors of a larger iPad in the works – the latest one Chinese site Pad News claiming that Apple is testing several variants of a 12.9-inch iPad – we thought it would be interesting to gauge the level of interest.

The specifics of this claim fall well into sketchy territory. Pad News suggests a 4K display, which wouldn’t match iPad resolution ratios (though as the current iPad is close to 2K, something close to 4K wouldn’t be impossible). It also suggests a launch date of April – given that Apple switched iPad launch dates from the spring to the fall, switching back again doesn’t seem terribly likely.

The core rumor, however, has been around for quite some time. Several different sizes have been suggested, but 12.9 inches is the one most commonly cited. This idea first emerged back in May, attached to the world’s least likely name, and gained credibility (without the silly name) when reported by the WSJ in July … 
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iPhone 5s production in numbers: 500K phones a day, 600 workers per iPhone

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WSJ piece on Foxconn ramping up production of the iPhone 5s to meet demand provided an interesting glimpse at some of the numbers involved.

Foxconn operates 100 production lines, which are now operating at maximum capacity 24/7 to turn out 500,000 iPhones 5s handsets per day according to the report. Each iPhone represents the combined work of around 600 people. The unnamed Foxconn source said that this amounted to 100 people more than for the iPhone 5c due to the increased complexity of the high-end phone … 
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Foxconn stops iPhone 5c production at one factory, switches capacity to 5s

Photo: Sunday Mirror

Photo: Sunday Mirror

Foxconn is ceasing production of the iPhone 5c at one of its factories in order to boost production of the iPhone 5s, according to sources cited by Digitimes.

Foxconn Electronics (Hon Hai Precision Industry) will stop production of the iPhone 5c at its factory in Zhengzhou, northern China, and shift the capacity to iPhone 5s, according to industry sources.

Digitimes is not the most reliable of sources, but this one gels with other reports suggesting that Apple is cutting back on production of its plastic handset in order to keep up with demand for the iPhone 5s.

The reports can, of course, be viewed as indicating either success for the 5s or failure for the 5c. Given the numbers reported last month, following on from record opening weekend sales, it seems pretty clear that while Apple got its predictions wrong, the reason is good news rather than bad: more people than expected opting for the high-end handset.

Sketchiest of Apple television rumors suggests 4K 55- & 65-inch screens next year at $1500-2500

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One of the many Apple Television concepts out there (image: theverge.com)

Among the less likely of the many rumors surrounding  Apple’s long-expected move into full televisions is one reported in Bloomberg today, suggesting that Apple will launch 55- and 65-inch 4K televisions in the final quarter of 2014 with pricing in the $1500 to $2500 range.

Masahiko Ishino, an analyst at Advanced Research Japan Co, claims the displays will be made by LG, the GPUs by Samsung and the frameless glass cover made from Corning Gorilla Glass 3, with Foxconn assembling the products … 
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iPhone takes 51% share of smartphone activations at Verizon in Q3, unit sales flat compared to Q2

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Graph by Benedict Evans.

Verizon has just reported their results for the third quarter, with smartphone sales topping 7.6 million units. While the press release does not disclose details about iPhone performance, on Verizon’s conference call, the company announced that iPhones were responsible for just over half of all Verizon’s smartphone activations, compared to about 43% in Q2. It is important to remember the distinction between activations and sales, with activations including passed-down devices to spouses or children as well as the strong iPhone reseller market.


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KGI’s Ming-Chi Kuo provides details on new iPads coming in Q4

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An analyst note from a usually reliable Ming-Chi Kuo (郭明錤) seemingly confirms our expectation that Apple will not announce new iPads on September 10th, but at a separate event later in the year.

The note makes supply chain forecasts suggesting that assembly production of the iPad 5 and iPad Mini 2 will start with low-volume production this month, and enter mass-production in the final quarter. If the tablets were to be announced on September 10th, we would expect them to be much further along the production cycle by now.

As expected, both iPad models are said to use the A7X processor, which should see be a particularly noticeable improvement on the existing A5-based Mini.

There were a couple of surprises in the note … 
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Apple gears up for expansion in China with more than 200 senior job openings

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Photo: news.cn

Photo of Beijing Apple Store: news.cn

Apple appears to be preparing for increased focus on the Chinese market, with more than 200 (mostly) senior job openings appearing on LinkedIn, reports the WSJ. Some of these were added in the past three weeks, many within the last few days. Digitimes reported yesterday on Apple also seeking senior engineers in Taiwan.

With the developed market close to saturation point, the BRIC markets – Brazil, Russia, India and China – are key to Apple’s future expansion. Worldwide, smartphones represent only just over half of the total cellphone market, generating massive potential for future growth.

Apple’s challenge in China is as much a political one as it is marketing-based … 
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