Production

Rumor: the iPhone 5S entering trial production in December

Christian Zibreg ∙ November 12, 2012

And you thought your iPhone 5 would keep you on the bleeding edge of technology. A new report out of Asia this morning claims that Apple plans to begin trial production of a next iPhone, the iPhone 5S, in December. The reason for such a hasty production schedule? Low yields that continue to affect availability of the current iPhone 5.

In order to avoid similar problems with the next iPhone, the story goes, Apple wants to start trial production of the iPhone 5S as early as possible so the company could work out any kinks ahead of volume production, which is apparently slated to begin in the first quarter of 2013...

Apple and MFi makers: Lightning is waterproof, ethical accessories

Christian Zibreg ∙ November 8, 2012

We relayed word mid-October that Apple would hold a two-day discussion with third-parties in Shenzhen, China the following month in order to discuss terms an guidelines pertaining to Lightning-compatible accessories that bear the Made for iPhone / iPod / iPad (MFi) program logo. In spite of secrecy, one publication has learned a few topics that are being discussed at the meeting.

For starters, Lightning I/O is waterproof. So, knowing the dynamically assigned pins of the Lightning connector won't corrode or degrade if dunked into water should make you feel good. I'm just taking a wild guess here, but it's quite possible Apple made this move to appease a cottage industry around waterproof accessories. More tidbits below the fold...

Suppliers profit up 29% on new Apple product launches

Ed Sutherland ∙ November 8, 2012

A high tide lifts all ships, especially if it is Apple. That's the word today from one observer who says Apple suppliers are enjoying a 29 percent profit boost due to "blockbuster new products" recently released. Apple's key suppliers saw their profits increase dramatically compared to the usual (and paltry) two percent growth and much higher than September's tepid one percent increase, Wall Street analyst Brian White told investors Thursday. The reason: Apple's line of new products, including the iPad mini, iPhone 5, a thinner iMac lineup and refreshed MacBooks...

Foxconn admits to falling behind iPhone 5 demand

Christian Zibreg ∙ Updated January 26, 2016

Terry Gou, the CEO and chairman of Foxconn which assembles Apple's iPhone and many other products, admitted in an interview with Reuters today that his company continues to face production hurdles meeting the massive iPhone 5 demand. It's not surprising that the world's largest contract manufacturer is coping with production issues.

The company recently acknowledged that the iPhone 5 is "the most difficult device" it has ever assembled. In particular, the sophisticated handset with its in-cell display assembly technique and the excquisite Unibody chassis is proving challenging even for Foxconn to make in enough quantities. On top of that, Apple has tightened quality control following reports of teething issues with scratches and nicks from "normal" wear and tear...

Did Apple bail out Sharp to the tune of $2 billion?

Ed Sutherland ∙ Updated April 18, 2018

A detective story of sorts is unfolding in Silicon Valley. Did Apple spend $2 billion to prevent Japan's Sharp going under and putting the iPhone 5 in jeopardy? That's the belief of one analyst who did what all good investigators do: follow the money. Sharp was in financial trouble. It lost $1.3 billion in early 2012, was facing another $2.3 billion due in 2013 and lost a potential lifeline from Foxconn.

In late August came word that Sharp's production of touchscreens for the then unreleased iPhone 5 had slowed. A delay could crimp the Cupertino, California company's ability to meet the expected high demand for its new product. But just weeks after that dire warning, news broke in September that Sharp was producing "mass quantities" of the displays. What caused the sudden turn-around? Apple, some say...

The iPad mini cost concerns are overblown, analysts say

Ed Sutherland ∙ October 29, 2012

Stop your worrying. That's the message from one Wall Street analyst trying to calm investors' concerns over Apple announcing smaller margins. A wave of worrying erupted last week when company executives announced the iPad mini comes with an unwanted add-on: tighter profit margins. Deutsche Bank analyst Chris Whitmore called such concern "overblown," saying the lower-than-expected margins are "nearly entirely cyclical and not structural" as Apple ramps up production and perfects the manufacturing process. After all, we've seen this before...

LG Display beats Samsung handily for Apple display orders

Christian Zibreg ∙ October 25, 2012

According to a new supply chain report, LG Display beat its arch-rival Samsung for display panel orders and has now become the primary supplier of screens that Apple uses to build virtually all of its recently refreshed products.

Specifically, LG Display is said to provide panels for the new iPad mini, fourth-generation iPad with Retina display, 13-inch MacBook Pro and both 21.5 and 27-inch revamped iMac models. This is of particular interest to would-be shoppers eyeing the iPad mini because "frustrated suppliers", per one analyst, previously had issues meeting Apple's exacting standards...

Supplier issues could lead to limited availability of initial iPad mini stock

Cody Lee ∙ October 24, 2012

Folks interested in purchasing Apple's new iPad mini may want to make sure and order one as soon as possible when pre-orders go live this Friday. Word is, one of Apple's suppliers for the tablet is having problems meeting its yield rates, and this could lead to a shortage of iPad mini stock...

Samsung said to end LCD sales to Apple

Ed Sutherland ∙ Updated April 10, 2018

More fallout from Apple's patent lawsuit win against Samsung: the South Korean company's LCD arm will stop selling displays to the Cupertino, California iPhone maker. The reason? Samsung Display no longer sees Apple as "a cash-generator due to the iPhone maker's stiffer supply-chain management structure," a South Korean newspaper reports.

"We are unable to supply our flat-screens to Apple with huge price discounts," a senior Samsung source was quoted Monday. To make up for the lost business, both Samsung's own handset unit and Amazon are upping their orders from Samsung Display, the source said...

Apple to pony up for stricter iPhone 5 quality control

Christian Zibreg ∙ October 22, 2012

Apple will reportedly pay up to "partially absorb costs" related to stricter quality control in iPhone 5 manufacturing, according to Sterne Agee analyst Shaw Wu. Faced with numerous complaints from early adopters who noticed their handset is far more prone to scratches and nicks which Apple initially attempted to dismiss as "normal" wear and tear, the company is now ready to take a hit on its near-term gross margins to improve production quality of the iPhone 5. Specifically, the analyst projects the iPhone maker's gross margins to be between 40.5 percent and 41.5 percent versus Wall Street's consensus between 42 percent and 43 percent...

Journalist tours Foxconn’s Shenzhen campus

Cody Lee ∙ Updated April 18, 2018

If you were to ask someone what they thought of Foxconn today, chances are their response would be negative. And for good reason. Over the past few years, we've heard horror stories about the manufacturing giant regarding terrible working conditions and child labor, and we've seen the pictures of the windows with prison bars and the suicide nets.

And that's exactly the kind of scene James Fallows, a journalist for The Atlantic, prepared himself for, as he set out on a tour of Foxconn's famous Shenzhen campus. He was ready to see the dark, depressing work environment and the somber, joyless employees that he had read so much about in other reports. But it didn't go at all how he expected...

Foxconn’s comment on iPhone 5 production woes: “practice makes perfect”

Christian Zibreg ∙ October 17, 2012

Media reports about Scuffgate related to the widely reported quality-control issues with iPhone 5 manufacturing have subdued a bit as we head into the iPad mini press conference next Tuesday. That said, it's a tad surprising Apple's favorite contract manufacturer Foxconn would agitate spirits by explaining to The Wall Street Journal why the iPhone 5 is so difficult to manufacture.

Apple's phone, in Foxconn's words, is "the most difficult device that Foxconn has ever assembled". Workers are assembling iPhones in two new plants they are not familiar enough with, using brand new production processes that take time to perfect. Build quality will improve over time as workers advance their skills, but only to the extent of the limitations regarding the handset's anodized coating...