Production

2017 iPhone 7 production cut by 10 percent

Christian Zibreg ∙ December 30, 2016

Several analysts interviewed recently by The Wall Street Journal opined that iPhone 7's supposed lack of compelling features probably convinced many owners of the exploding Note 7 to opt for another high-end Galaxy handset, and not Apple's flagship phone.

Their remarks were corroborated today by supplier data collected by Japanese newspaper Nikkei Asian Review, which claims Apple is planning to cut iPhone 7 and iPhone 7 Plus orders by ten percent starting in the first quarter of 2017 after they “sold more sluggishly than expected”.

Foxconn has 10 fully automated production lines

Christian Zibreg ∙ December 30, 2016

iPhone manufacturer Foxconn continues to replace factory workers with industrial robots, called Foxbots. These machines take advantage of artificial intelligence to perform elaborate assembly work more efficiently than humans can. As of May 2016, Foxbots had replaced as many as 60,000 factory workers and now a new report from DigiTimes details progress the contract manufacturer has since made in terms of boosting automated production across its facilities in China.

Apple has reportedly commissioned three different manufacturers to build iPhone 8

Christian Zibreg ∙ December 30, 2016

Hedging its bets, Apple has apparently commissioned a third contract manufacturer to build iPhone 8 alongside established suppliers and longtime partners Foxconn and Pegatron. According to a Chinese-language report in the Economic Daily News newspaper, quoted by Taiwanese trade publication DigiTimes, Apple supplier Wistron will get to build some of the future iPhone units.

AirPods manufacturer Inventec is expanding capacity to meet strong demand

Christian Zibreg ∙ December 30, 2016

According to a brief report in the Chinese-language Economic Daily Times newspaper that was quoted Friday by DigiTimes, strong sales of the W1-enhanced AirPods and robust demand for Apple's earphones during the year-end holidays have prompted supplier Inventec to increase production capacity. While Inventec declined to comment on its orders, it's reportedly begun expanding capacity at its Shanghai plants, which are currently working overtime to deliver orders.

NYT details Foxconn’s Zhengzhou facility that manufactures iPhones on a massive scale

Christian Zibreg ∙ December 29, 2016

Most of the iPhone models Apple develops, markets and sells are being assembled by Foxconn, the world's leading contract manufacturer. In a new investigative piece, The New York Times newspaper delves into the inner workings of Foxconn's iPhone manufacturing plant in Zhengzhou, a city of six million people in an impoverished region of China.

Fun fact: the world’s biggest iPhone factory, referred to as “iPhone City” by the locals, is capable of churning out half a million iPhones per day at peak.

Sharp working to secure iPhone camera lens orders from Apple

Christian Zibreg ∙ December 29, 2016

According to Japanese outlet Nikkei, cited by DigiTimes, Sharp is hoping to secure some camera lens orders from Apple for future iPhones. To boost its chances of cutting a lucrative deal with Apple, Sharp is now speculated to increase its investment in Japan-based lens module maker Kantatsu, in which it currently holds a 44 percent stake.

Sharp would need to compete with Taiwan-based Largan Precision, which currently supplies iPhone camera lens modules in volume. Sharp is owned by Foxconn, the world's top contract manufacturer that assembles iPhones.

Samsung rumored to be lone supplier of AMOLED panels for 5.8-inch iPhone 8

Christian Zibreg ∙ December 29, 2016

Barclays Research analysts think Apple might offer iPhone 8 in two screen sizes, one measuring five inches diagonally and the other 5.8 inches. DigiTimes claimed in March that Apple had picked Samsung Display as the main supplier of 5.8-inch AMOLEDs.

In a follow-up report Thursday, DigiTimes reiterated that Samsung Display will be Apple's exclusive supplier of 5.8-inch AMOLED display panels for iPhone 8.

Many Apple supply chain vendors won’t set up shop in U.S. even if Foxconn does

Christian Zibreg ∙ December 28, 2016

After the United States President-elect Donald Trump promised tax incentives to Apple to build “Made in USA” iPhones, Japanese outlet Nikkei reported that Tim Cook & Co. already asked back in June its contract manufacturers Foxconn and Pegatron to look into assembling iPhones domestically. Foxconn reportedly complied, but don't expect other Chinese vendors in Apple's vast supply chain to follow suit.

As reported Wednesday by Chinese-language outlet qq and cited by trade publication DigiTimes, most Chinese supply chain makers will not follow Foxconn even if Apple decides to shift production to U.S.

Poor yields for TSMC’s 10-nanometer process could disrupt next iPad launch

Christian Zibreg ∙ Updated October 17, 2018

Trade publication DigiTimes said Friday that Taiwan Semiconductor Manufacturing Company (TSMC) has received orders to kick off volume production of Apple-designed A10X Fusion chips for the next iPad. However, unsatisfactory yields for TSMC's 10-nanometer process technology could disrupt planned March 2017 launch of the next iPad series.

The proportion of semiconductor devices on the silicon wafer found to perform properly is referred to as the yield. Yield rates in semiconductor fabrication can be as low as thirty percent due to process variation and many other reasons.

Apple’s search for top OLED screens hinges on a small subsidiary of imaging giant Canon

Christian Zibreg ∙ December 22, 2016

Yesterday's report on Bloomberg detailed Apple's search for the best organic light-emitting diodes (OLED) panels on the market. The company's quest to deploy advanced OLED screens on iPhone 8 reportedly hinges on a single supplier in the Japanese countryside, called Canon Tokki, which has been making OLED machines since 1993.

A small branch of Japanese imaging corporation Canon, Tokki has “a near monopoly” on the machines that suppliers use to churn out OLEDs in volume. Although it employs just 343 engineers, Tokki has 20 years of experience developing and perfecting OLED manufacturing equipment.

iPhone manufacturer Foxconn rumored to spend $7 billion on U.S. expansion

Christian Zibreg ∙ December 7, 2016

Taiwan-based iPhone manufacturer Foxconn is said to be considering pouring as much as $7 billion into a massive expansion of its operations in the United States, looking to create 50,000 jobs within the country in the next four years, Reuters reported Wednesday.

Foxconn is reportedly looking to build a collection of U.S.-based assembly plants.

The company has confirmed being in preliminary discussions regarding expansion of its U.S. operations. CNBC earlier posted a slide which pegs the investment at $7 billion.

President-elect Trump promises tax incentives for Apple to build “Made in USA” iPhones

Christian Zibreg ∙ November 23, 2016

Apple reportedly asked contract manufacturers Foxconn and Pegatron to look into assembling iPhones in the United States and now we learn that Tim Cook phoned President-elect Donald Trump following his victory to talk about U.S. manufacturing.

In an interview with The New York Times, Trump reveals he's promised tax incentives to Apple to build its products domestically rather than outsource component production and assembly work to Taiwanese and Chinese suppliers and contract manufacturers.