The upcoming iPhone 14 series from Apple, which is expected to launch in September, could be delayed. A recent report claims that the ongoing political tension between China and Taiwan may cause Apple to postpone the release of the iPhone 14 series.

Everything started when Nancy Pelosi, the Speaker of the US House of Representatives, paid a visit to Taiwan, which China did not like. For those wondering how these elevated political tensions affect the iPhone 14 series launch, Apple outsources the manufacturing of its chipsets to the Taiwanese semiconductor giant TSMC. At the same time, China is the primary location of Apple’s component suppliers for the iPhone.

Apple has reportedly urged its Taiwanese suppliers to adhere to China’s new rules, prohibiting labeling products as “made in Taiwan, China” or “Chinese Taipai.”

Supply shipments from Taiwan to the Pegatron factory in Suzhou, China, which manufactures various products for American companies like Microsoft and Taiwan, have already been halted by China. These shipments are being held up by customs as they check the shipping documentation for any mention of Taiwan or its official “Republic of China” designation.

During her tour to Taiwan, Pelosi was photographed with Pegatron Vice Chairman Jason Chen and other business leaders from the chip industry. A trade war could result from the existing tension and impede the production of the upcoming iPhone before its release.

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(Via: Phone Arena)

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Apple is considering to slowly diversify its manufacturing for export to countries like India and South Asia. The company, which has been increasingly dependent on Chinese facilities such as Foxconn, Pegatron, etc., for manufacturing its diverse portfolio, has decided to make this slow shift in the post-pandemic period.

Apple has instructed its manufacturing partners to perform more NPI (New Product Introduction), which is a preliminary stage of mass production work in which contractors translate a brand’s product blueprints and prototypes into a precise manufacturing plan outside of China, according to a Wall Street Journal report.

The company was thinking of making this geographic change for some time now but the pandemic had posed a hurdle. The recent developments in Shanghai which have led to further strict lockdowns have intensified the resolve to diversify. Another reason for this move is the increasing tensions between U.S and China relations and the travel restrictions between the two countries.

India and Vietnam are being considered as major alternatives to China. The countries already account for a small portion of Apple’s global manufacturing. Foxconn, Apple’s manufacturing partner has already set up facilities in India to help make iPhones for the Indian market. Apple is now talking with its various suppliers to set up manufacturing hubs in India for export.

However, China will still be the most prominent manufacturing hub for Apple due to various factors such as a well-trained workforce, low costs relative to the U.S., and a deep network of parts suppliers that are hard to recreate elsewhere without years of effort.

The shift to alternate manufacturing hubs will be slow and they will serve as a manufacturing hub for new product categories such as AR headsets, etc., predominantly. The upcoming months will shed more light on how Apple will lead this diversification.

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Luxshare, one of the Apple suppliers, is building an enormous new iPhone factory in China. The new factory would help boost its iPhone assembly capabilities to better rival other suppliers like Foxconn and Pegatron.

According to a Nikkei Asia report (Via AppleInsider), the supplier of the Cupertino based giant is apparently setting up a massive 285,000 square meter manufacturing facility in Kunshan City, China. Furthermore, the firm plans to complete the first phase of the new giant site in the middle of next year and production of iPhone models could begin sometime later in the same year. Luxshare is investing a sizeable 1.73 billion US Dollars in this project.

Through the new plant, the company would be able to boost its iPhone assembly even further, with its volume production expected to rise from 6.5 million units to 12 million or even 15 million units by 2022 end. To put things into perspective, the new manufacturing park spans a whopping 40 football fields. Notably, Luxshare has also leased and renovated a nearby plant that was previously owned by an iPad assembler.

With the announcement of this huge plant, Apple’s supply chain might see a major shift as iPhone assembly is seeing a move from Taiwan to China. Earlier this year, Chinese partners accounted for around 33 percent of all the new suppliers that Apple added to its supply chain list. As of right now, the company relies on Taiwanese suppliers like Foxconn and Pegatron for the majority of its iPhone assembly, with the former being responsible for 60 percent of the smartphones and the latter accounting for around 30 percent.

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Known Apple suppliers, Foxconn and Pegatron, are expanding their production capacities outside of China by increasing their overseas production. This is in line with the plans of globalization of operations.

The Taiwanese based firm, Foxconn, has set up factories in Vietnam. This site will have an overall production capacity that could meet demand by 2021 and 2022, as per the company’s chairman Liu Young-Way. Although, it is still uncertain whether the production capacity in the region can be further expanded since it is increasingly difficult to acquire factory sites in the country.

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Furthermore, Foxconn also has plan to set up production sites in India as well. The region holds a huge market potential, but the progress would still depend on the country’s individual environments, politics, and other important factors. Foxconn is also working to establish a site in Wisconsin, US. These production lines will focus on local demand exclusively and will also include AI based devices, servers, telecom/networking devices and other software based products as well.

Similarly, the DigiTimes report also stated that Pegatron has started contructing a factory in Indonesia in 2019, with production having started already. The company’s president and CEO Liao Syh-jang revealed this information and also added that it has also kicked off its production at a factory in Vietnam. Like Foxconn, the Apple supplier, Pegatron, is also planning on building a factory in India and plans to start production in the region by 2021.

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Earlier today (9th November 2020), Apple announced that it has put its Taiwanese supplier, Pegatron, on probation after the company was found violating its supplier code for employing student workers and asking them to work overtime and on night shifts.

According to a Reuters report, Pegatron had wrongly classified its student workers and even provided false paperwork to disguise its violations. This led to a breach in contract on multiple counts as well, as students were even working on cases that were not related to majors. For those unaware, the supplier is one of the handful of firms that the Cupertino based giant employs from Taiwan, which also dominates its supply chain.

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An Apple spokesperson stated in a conference that “Several weeks ago, we discovered Pegatron – one of Apple’s suppliers in China – violated Apple’s Supplier Code of Conduct in its administration of a student work study programme.” It was further added that “Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required.”

At the moment, the terms of the probation are unknown. Furthermore, an investigation from Apple has not found any evidence of forced or contracted labor of underaged individuals. Pegatron has since fired its executives that were directly involved with the oversight of the program and the minors have also been taken off production lines, and have also received “proper compensation.”

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Apple iPhone makers are said to be one among the companies that are expected to win approval to participate in a 6.6 billion US Dollars program that aims on bringing manufacturing to India.

For those unaware, the Indian government recently announced that it is expecting to approve a plan that aims at bringing 150 billion US Dollars worth of smartphone production into the country over the course of the next five years. According to a Bloomberg report, sources close to the matter said that known iPhone assemblers like Foxconn, Wistron, and Pegatron have already been cleared by the government committee for the program.

These three companies essentially produce almost every iPhone old in the world, with a majority of their assembly lines being located in China. Now, with the added incentive of the PLI (Production Linked Incentive) program, the government is trying to offer manufacturing incentives to some of the world’s largest smartphone brands to make their products in India and export to the world.

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Apart from the iPhone assemblers, Samsung is the only other applicant for the five slots allotted to foreign companies. Notably, popular Chinese brands like Oppo and Vivo are clearly missing from the list, which might be indicative of the rising trend of countries reducing dependence on China. Hari Om Rai, chairman and founder of Lava (an Indian OEM) stated that “It’s a thoughtful move by the government aimed at wooing Apple to bring significant iPhone manufacturing to India because, when the iPhone maker shifts, an entire ecosystem follows.”

At the moment, Chinese brands have been the most dominant companies in the Indian smartphone market. An analyst said that “Chinese brands have driven out domestic phone companies, leaving them with a mere 2% market share.” So the move also aims to strengthen local brands while also bringing in incentives for other international players to help boost the economy as well.

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Pegatron, a Taiwanese company which is the world’s second largest contract manufacturer of electronics is reportedly planning to setup and run new factories in Indonesia and Vietnam by the end of this year.

With such as move, the company will essentially be shifting its production away from China as the production cost are rising because of higher labor costs as well as the on-going U.S.-China trade war. Further, the move is also aimed at diversifying production regions.

In an interview, Tung Tzu-hsien, Chairman of Pegatron said that China “has not been an optimum manufacturing location since more than five years.” He also added that when the U.S. President Donald Trump “threw a stone, diversification of production began like tumbling building blocks.”

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Sharing details about the company’s new plans in Indonesia and Vietnam, Tung said that these new plants will make devices for internet connectivity. The Indonesian plant will on Batam Island, about 20 km from Singapore, while the Vietnamese plant will be in the north of that country.

Further, the company plans to expand domestic production lines in response to Taiwanese President Tsai Ing-wen’s policy of promoting local manufacturing. Pegatron makes a wide range of devices, including Apple iPhones, under contract. It is second only to fellow Taiwanese company Hon Hai Precision Industry, better known as Foxconn.

While some of the leading smartphone makers have established their manufacturing facilities in India and are doubling down on that, Pegatron is not ready to do so. Commenting on this, Tung said that India “is an important option, but we haven’t obtained consent from our customers.”

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(Source)

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As the trade war between the U.S. and China worsens, and sanctions against Huawei get thrown into the mix, Apple and its supplier Pegatron are beginning to hedge their bets by relocating more of the company’s supply chain to places outside of China. A local report by Digitimes suggests that Indonesia has been chosen over Vietnam thanks to a better worker supply.

It seems like Pegatron is all prepared for assembling MacBooks and iPads in Batam, Indonesia, with production slated to start next month. The work will be subcontracted by Pegatron to PT Sat Nusapersada, a local manufacturer in Batam, and although the company’s CEO stopped short of naming the clients it would be working for, there’s a high chance Apple is in that list.

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Pegatron is investing $300 million in Indonesian factories to achieve this, and they seem quite confident. PT Sat Nusapersada’s CEO claims that Indonesian productivity is superior to China’s, with a comparatively small 2% turnover rate. Apple’s contract manufacturers have indeed experienced volatility in their labor forces, though these have been attributed as much to wage and quality of life issues as major swings in product demand.

Pegatron is not the only key Apple supplier looking to assemble products outside China: Foxconn has confirmed its own plans to begin mass-production of iPhones in India later this year. Given the massive escalation in that war by the Trump administration earlier this month, this move only makes sense in the grand scheme of things. The escalations are hard on everyone, and we hope to see some form of resolution soon.

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(Source)

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Is now we have a leaked picture of iPhone 5C, this is the one of iPhone 5 that offers with cheap price, the picture is leaked and spread through Sina Weibo website.

If you’re thinking of this picture is fake, you have to read the news from Engadget, thats doing some research to that picture, this picture is taken by Pegatron employee, is now he fired by the Pegatron since he spread this picture to the net without the caption, he just adding the word : “The low-end iPhone 5C to be launched for Chinese consumers in September doesn’t look much different than the Xiaomi Phone 2, right?”

The picture shown the iPhone 5C appears to be a warm-up procedure (likely just with small batches for quality control) to make sure the devices are fully functional before they are boxed up to the market. While we all know that the rumor says, Apple will officially release those new generation of iPhone on September 10th, 2013.

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