More high-end iPhones being made in India, as Apple continues to reduce reliance on China
New iPhone plants in India, as Apple shifts more production from China; AirPods, too
The Indian government has today announced that Foxconn has broken ground on $500M worth of new iPhone plants in Telangana, in the south of the country, as Apple continues its efforts to move more production out of China.
At least one of the plants is also expected to manufacture AirPods, after Apple offered Foxconn a new contract for these back in March …
Expand Expanding CloseTSMC Arizona plants facing ‘unacceptable’ US rules; company wants twice as much money
Act surprised! There’s a potential snag in the plan for Apple chips to be made in the US by TSMC. The company’s A-series and M-series chipmaker says that the US government is imposing “unacceptable” conditions on the two TSMC Arizona plants it is building.
TSMC is said to have been offered tax credits worth $7-8 billion, but a new report says it is looking for the government to double its incentives to around $15B, and to waive the profit-sharing terms attached to the CHIPS Act …
Expand Expanding CloseAfter Foxconn, Apple chipmaker TSMC revenue also fell in March
iPhone assembler Foxconn last week reported a 21% year-on-year fall in revenue in March, and we’re today learning Apple chipmaker TSMC revenue also fell in the same month – by 15%.
While there are reasons to be cautious about reading too much into these results, it is near-certain that they give at least some clue as to Apple’s current fortunes …
Expand Expanding CloseFoxconn revenue shows 21% fall in March, expects further decrease this quarter
Foxconn revenue for March were reported today, and revenue for the iPhone assembler shows a year-on-year fall of 21.1%.
The company says that it also expects a decline during the current quarter …
Expand Expanding CloseNew Foxconn plant in India may be half the size of China’s iPhone City
A new Foxconn plant in India looks set to be about half the size of the massive iPhone assembly facility in Zhengzhou, China – colloquially known as iPhone City.
Foxconn’s Zhengzhou plant employs around 200,000 people, and the new Indian facility is said to be creating around 100,000 jobs. It may also represent a key step in Apple building out an extended supply chain in India …
Expand Expanding CloseApple manufacturing in Vietnam expanding, likely including the 2023 Mac Pro
Apple manufacturing in Vietnam is set to expand, as the Cupertino company continues working on reducing its dependence on China. The 2023 Mac Pro looks likely to be one of the products assembled there, which would mean Apple dropping the “Made in USA” tag used for the 2019 model.
Foxconn already makes iPads and AirPods in Vietnam, but so far hasn’t begun iPhone or Mac assembly in the country …
Expand Expanding CloseiPhone quality standards require 1,200 workers per production line; only 100 for Android
A piece on a change of leadership in Foxconn’s iPhone assembly business includes an eye-opening insight into the iPhone quality standards laid down by Apple.
The new head of iPhone assembly said that while production lines for Chinese Android phones required only 100 workers each, the equivalent iPhone production lines needed 1,200 workers …
Expand Expanding CloseiPhone 15 production enters first phase, with initial trial production
Foxconn has begun the very first stage of iPhone 15 production, in the form of initial trial production. This stage is formally known as new production introduction, or NPI.
The NPI stage is designed to identify any problems with the planned production process, as well as to identify opportunities for refinement and streamlining …
Expand Expanding CloseiPhone 14 Pro availability improves after Christmas demand eases, and production increases
iPhone 14 Pro availability has greatly improved, now that Christmas demand has eased, and production at the world’s biggest assembly plant is reported to have climbed to around 70% of full capacity.
A few models are now available for immediate pickup at some Apple stores, while the company’s US online store is showing 1-2 week delivery for most other orders …
Expand Expanding CloseSick iPhone workers expected to keep working, refrain from COVID-19 testing, claims report
A report claims that Foxconn is asking sick iPhone workers to turn up for their shifts in the Zhengzhou plant, with at least one report stating that workers are being advised not to take COVID-19 tests.
Foxconn’s campus in Zhengzhou, China, is the largest iPhone assembly plant in the world, estimated to produce around 80% of the world’s iPhone supply – including all iPhone 14 Pro models …
Expand Expanding CloseMost iPhone City COVID restrictions end, including controversial point-to-point system
Foxconn has ended most iPhone City COVID restrictions, after the local government removed its Zhengzhou plant from a “high risk” classification. The Chinese government also finally appears to be ending the ultra-strict COVID Zero policy which was behind the restrictions.
Of particular note, the iPhone assembler has ended its controversial point-to-point system, which was a significant source of worker unrest at the plant …
Expand Expanding CloseFoxconn closed-loop production continues, despite end of Zhengzhou lockdown
Foxconn closed-loop production, in which workers remain inside the campus 24/7 for up to a month at a time, is to continue – despite the fact that most of the city has been released from lockdown.
It had been hoped that a return to normal operation would improve conditions for workers, and help the company recruit new staff to replace those who left, but these hopes appear to have been dashed for now …
Expand Expanding CloseiPhone City lockdown ended, as Foxconn plant troubles estimated to cost Apple $1B/week
The iPhone City lockdown has ended, allowing free movement of residents and workers in Zhengzhou, China. The move will help relieve pressures at the Foxconn plant after a massive production disruption that is estimated to have cost Apple around a billion dollars a week in lost iPhone sales.
The ending of COVID-19 restrictions in the city will allow Foxconn to exit the closed-loop production process, which has been a key factor in the plant’s recent troubles …
Expand Expanding CloseiPhone 14 Pro shortage could hit 6M units following unrest and resignations
The iPhone 14 Pro shortage could hit as many as 6 million units before production recovers, according to a new report. The shortfall has already made it too late to order either of the Pro models in time for Christmas in many countries.
Additionally, large-scale lockdown protests in Shanghai could potentially put MacBook production at risk …
Expand Expanding CloseMass resignations of iPhone workers after unrest, with report of 30% production loss
There have been mass resignations of iPhone workers following the recent unrest at the plant, caused by Foxconn failing to pay the promised recruitment bonuses, and growing fears about the COVID-19 outbreak within the plant. More than 20,000 new hires are said to have left.
An internal estimate reportedly says that more than 30% of production could be lost, with iPhone 14 production already falling way behind demand in the crucial run up to the holidays …
Expand Expanding CloseFoxconn admits pay error; offers compensation to those wanting to leave; Apple team on-site
Foxconn admits it made a “technical error” that resulted in newly recruited iPhone workers being paid less than they had been promised. The admission follows violent clashes between workers and police at the world’s largest iPhone plant in Zhengzhou, China.
The company has pledged to correct the error for those who stay, and has offered compensation to any new recruits who no longer want to work there …
Expand Expanding CloseViolent clashes between iPhone workers and police over unpaid bonuses, lack of food, poor COVID-19 management
Violent clashes between iPhone workers and police have been seen in video footage from Foxconn’s primary iPhone assembly plant in Zhengzhou, China. You can see the video clips below.
Workers say that promised bonuses (referred to in local reports as “subsidies”) have not been paid; that there is inadequate food and medical supplies for workers locked into the facility; and that the company is failing to properly separate infected and uninfected employees …
Expand Expanding CloseiPhone production crisis in China will see Foxconn quadruple workforce in India
The iPhone production crisis in China has led Foxconn to announce plans to quadruple its workforce in India. The move will not, however, solve the immediate problem.
While Apple and its suppliers have been working for years on reducing the company’s dependence on China as a manufacturing hub, progress has been painfully slow – especially for the iPhone …
Expand Expanding CloseiPhone 14 production hit badly enough to reverse revenue growth, warns Foxconn
The COVID-19 disruption to iPhone 14 production at Foxconn’s primary assembly plant was bad enough for Apple to issue a warning about limited availability, and Foxconn has now issued a warning about the impact on its own prospects for the current quarter.
Foxconn says that revenue from consumer electronics assembly will fall in the all-important holiday quarter, which is usually a busy one for the company …
Expand Expanding CloseChina’s COVID-19 outbreaks worsen, with another manufacturing hub under lockdown
China’s COVID-19 outbreaks are getting worse rather than better, with another major manufacturing and export hub under lockdown.
Some 4 million people in Guangzhou have been told to stay home, in what government officials have described as the worst outbreak since the start of the pandemic …
Expand Expanding CloseiPhone City lockdown after COVID outbreak; unclear whether total closure
The Foxconn plant in Zhengzhou – colloquially known as iPhone City – is entering a week-long lockdown from today, following a growing COVID-19 outbreak within the facility.
Given that the plant was already operating closed-loop production, where workers live and work within the campus for up to a month at a time, it’s not immediately clear what form the iPhone City lockdown takes, but one report refers to it as a “seven-day closure” …
Expand Expanding CloseiPhone worker bonuses up by 1,000% as Foxconn fights to retain staff
Foxconn has more than tripled iPhone worker bonuses as it fights to persuade them to remain working in extremely tough conditions amid a COVID-19 outbreak within its largest iPhone assembly plant.
For those who go further, and agree to forgo their leave this month, the bonus could amount to a 1,000% increase – from 1,500 yuan ($200) to 15,000 yuan ($2000) …
Expand Expanding CloseiPhone workers walking out after COVID-19 outbreak; Foxconn offers bonuses for staying
iPhone workers have reportedly been walking out in significant numbers after an outbreak of COVID-19 at the world’s largest iPhone assembly plant in Zhengzhou, China.
Some are worried about the risk of the infection, while others are unhappy about Foxconn’s stringent lockdown policies, which allow the plant to continue operations …
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