Suppliers

Apple in 2018 spent $60 billion with American component suppliers

Coinciding with today's report in The New York Times detailing why Apple won’t be bringing manufacturing jobs back home, the Cupertino technology giant has now issued a press release focused on US suppliers Finisar, Corning and Broadcom which are building parts for its products at domestic manufacturing plants.

The gist of the report: the iPhone maker in 2018 alone spent a whopping $90 billion with 9,000 America component suppliers and companies such as Finisar, Corning and Broadcom.

The figure translates into an increase of more than ten percent from the year before, supporting more than 450,000 jobs, according to the press release.

Finisar, which supplies laser components for the TrueDepth camera, was awarded $390 million from Apple’s $1 billion Advanced Manufacturing Fund last year to expand production. The supplier used that money to turn an unoccupied building in Sherman, Texas into a "bustling operation" full of people who will supply that future business.

Finisar's technician handles a VCSEL wafer during production.

The facility will eventually employ up to 500 engineers who will be mass-producing vertical-cavity surface-emitting lasers (VCSELs) for modern iPhones.

VCSEL wafers are nearly as thin as a human hair and contain hundreds of layers measuring only a few atoms in thickness. They require a highly advanced and precise manufacturing operation, as well as skilled technicians with specialized training.

Corning's 65-year-old facility in Harrodsburg, Kentucky produces iPhone cover glass. It received a $200 million investment from Apple for state-of-the-art glass processing.

Army veteran Michael Turner, 40, Michael Turner gets ready to enter the production floor at the Sherman plant.

Apple works with many other US suppliers, like Cincinnati Test Systems and Broadcom.

Cincinnati Test Systems in Ohio designed a first-of-its-kind equipment to ensure iPhone is water resistant. And Broadcom in Fort Collins, Colorado, Qorvo in Hillsboro, Oregon and Skyworks in Woburn, Massachusetts, are all making wireless communication hardware that enables global connectivity.

Since 2011, the total number of jobs created and supported by Apple in the US has more than tripled, from almost 600,000 to 2 million across all 50 states.

Nikkei: all iPhones released next year will use OLED screens

Apple will use advanced organic light-emitting diode (OLED) panels in all new iPhones launched from the second half of 2018, according to industry sources cited in a report Thursday by Japanese outlet Nikkei.

An industry source added that the Californian company is “tentatively looking” at releasing three new iPhones next year, adding Apple has already started to design the upcoming models.

Apple's plans are contingent upon suppliers' ability to churn out OLED panels in volume.

Because of that, the company could change its plans down the road. Sources in the OLED production equipment industry suggested that vendors may be unable to manufacture enough OLED panels to meet demand should Apple in fact go with OLEDs across 2018 iPhones.

An unnamed Sharp executive was quoted in the story as saying that “it was not likely” Apple will be using OLED screens for all new iPhones next year.

Here's a recent video of a CNC-machined iPhone 8 dummy based on the rumor-mill.

https://www.youtube.com/watch?v=pW1gx086ZxU

This year, as you know, Apple is widely expected to outfit iPhone 8 with an OLED-based screen.

The flagship device is expected to sport the highest screen-to-body ratio, ditch the physical Home button and reduce or completely eliminate the top and bottom chin.

Yuanta Investment Consulting said shipments of 2017 iPhones will reach 90 million handsets, half of which will be OLED models.

As for the iterative iPhone 7s and iPhone 7s Plus updates coming down the pike this year, these devices will continue to sport LCD screens like prior iPhone models.

Nikkei added that the iPhone 7s and iPhone 7s Plus models will be sold into early 2019. In other words, panel vendors will still be able to supply LCDs for older Apple handsets next year and well into 2019.