Taiwanese IT indicators signal poor iPhone 7 demand

There’s a growing consensus in financial districts that the iPhone 7 has seen its performance peak and that shipments and revenue forecasters at Apple may be disappointed come January. The latest signs are coming out of an index of certain industrial tech companies based in Taiwan.

The Nikkei Asian Review reports that November revenue for 19 such companies has edged down 0.04 percent on an annual basis. It might seem insignificant, but this is despite the fact that sequential revenue gains were logged at 11 of those companies. Furthermore, it marks three consecutive months of earnings drops.

Take the subset of nine companies involved in iPhone production and we find only three of them managed gains. The net revenue loss was a steeper 1.2 percent.

TSMC, which produced the A10 Fusion chipset for the iPhone 7, logged a 46.7 percent jump. Other business with NVIDIA and, reportedly, Qualcomm helped its bottom line. It seems Apple considers the semiconductor manufacturer an indispensable partner as sources from within the supply chain have previously said that Infinite Loop has been placing downward price pressure on most of its other parts providers and even assemblers.

Minus TSMC, the companies with iPhone business — including Hon Hai Precision Industry (Foxconn), Largan Precision and TPK Holding — lost 4.7 percent for November. These three companies fared worse than the averaged numbers.

Still, with declining lot costs for components, it is unclear if Apple might be squeezing out any sort of gain in shipments and sales for the iPhone 7.

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Tim Cook called Donald Trump, talked about making iPhones in the US with robots, reduced regulation

Donald Trump promises that America will become a land of factories once again. Sure, the factories will be full of robots, but the American worker will stand behind them.

In an expanded discussion with the publishing and editorial crew of The New York Times, the President-elect assuaged concerns that manufacturing jobs in the United States will be replaced by robotics and automation, saying that workers will “make the robots too.”

It’s a big thing, we’ll make the robots too. Right now we don’t make the robots. We don’t make anything. But we’re going to, I mean, look, robotics is becoming very big and we’re going to do that. We’re going to have more factories. We can’t lose 70,000 factories. Just can’t do it. We’re going to start making things.

One “thing” Trump hopes we’ll make? The iPhone.

Trump claimed to have received a call from Apple CEO Tim Cook and the two discussed how the company’s manufacturing could be moved out of east Asia and established domestically. Production line automation would definitely put Cook’s concerns about attracting a skilled workforce to its theoretical factories in the US to rest.

The President-elect would defray the costs to do so with corporate tax incentives and removing “regulations that anybody would agree are ridiculous.”

“I’ve seen all of the small business owners over the United States, and all of the big business owners, I’ve met so many people,” Trump said. “They are more excited about the regulation cut than about the tax cut.”

Philanthropist and former Microsoft CEO Bill Gates also called Trump.

We have no details into what regulations the long-time real estate developer would want to remove and most of them would have to go through Congress, albeit a friendly one. How invested Apple is in bringing iPhone assemblage and possibly even components manufacturing to the US, we can’t be sure of yet.

Another policy front that Trump is also interested in pursuing is a severe all-imports tax on China. Such a tariff would have the potential to greatly affect the costs of making an iPhone as well.

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An iPhone made in the USA? Apple may have convinced Foxconn to move

President of Sharp and senior Foxconn executive Tai Jeng-wu mentioned to students at his alma mater recently that he would be interested in building factories in the US if it meant keeping Apple happy.

Fast forward past the most surprising election of Donald Trump to the nation’s presidency. The looming specter of his trade policy — with a potential tariffs war with China and his desire to see Apple “build its damn computers” at home — may have convinced Infinite Loop to bite.

If what the Nikkei Asian Review is reporting from its sources is true, then we may have come to a point where the price for manufacturing the iPhone in the US has become right for all parties involved. But Apple’s request to its two major Taiwanese contractors that assemble the iPhone, Foxconn and Pegatron, to consider and blueprint a move to the US was reportedly made back in June.

“Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns,” one source claimed.

Apple’s biggest semiconductor partner, TSMC, is also said to be considering US plans.

Lax labor regulations in China have meant that many industrial companies have set up in the mainland in order to employ thousands while keeping costs down. The iPhone 7 is purported to have a $225 bill of materials.

Of concern with the move is the slack period required to build up the infrastructure needed before iPhone manufacturing operations can begin in the US and whether a President Trump will swing for a campaign promise of putting an all-imports tariff on China of 45 percent.

Apple CEO Tim Cook also mentioned in a CBS News 60 Minutes interview that the US does not have enough skilled nor interested workers for the company to tap into for tedious, on-your-feet assembly line jobs these days. With other US labor, economic and land development regulations in place, the cost to make an iPhone could, at the very least, double in the short term.

Whether the “Made in China” ink stays or goes, all of this could mean that the $649 iPhone may be no more — shipping components, parts and finished products back and forth across the Pacific may prove too heavy a burden for Apple to maintain its current base price level. The knock-on effect when exporting the iPhone to other countries could further dampen demand for what can arguably be considered the world’s most in-demand single smartphone. And here we are, worried about how the iPhone 8 might look like.

The colloquial Big Mac price index may soon be replaced with the iPhone price index and it may be the one gauge the political impact on global consumer spending.

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Galaxy S8 edge may be only S8 next year if yields allow it

The Galaxy Note 7 came alone. And its screen was diametrically tapered.You could say Samsung gave it a characteristic “edge” that it had given to some major mobile flagships in the past couple of years. But soon, it could be the only way that the chaebol will do its smartphone ...

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Everyone’s getting the “manufacturer-made” iPhone 7 shell and showing it off on video

So, who do we have to talk to and bribe to get one of these mockups over here?It feels like everyone should be on a mission to China to buy off what’s been described as iPhone 7 shell duplicates “from the manufacturer”. And then everyone shows those dupes on video for the world to pick up.This time around, we have Chinese audio brand BeSound — which makes a Bluetooth ...

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Foxconn job cuts total 60,000 at one factory thanks to automation

Ever since a factory explosion in Kunshan, China killed 146 people in 2014, it seems that the area’s manufacturing industry has been on decline. While these plants still provide Taiwanese manufacturers with the components and materials needed to build products like the iPhone and other electronics, what you’ll find less of these days is people.For example, Apple supplier Foxconn has done away with 60,000 jobs at a Kunshan plant formerly of 110,000 workers. The company ...

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