Apple Wants To Shift Some Of Its Production Out Of China

Zhengzhou is home to a giant Foxconn facility known as iPhone City, where a worker is shown at right disinfecting equipment. (Shang Ji/Future Publishing/Getty Images)  

Zero Hedge: Apple Accelerates Plans To Shift Production Out Of China 

Apple has accelerated plans to shift some of its production outside of China, the Wall Street Journal reports, citing insiders. 

The company has been reportedly telling suppliers to 'actively' plan on assembling Apple products elsewhere in Asia - primarily India and Vietnam, as the company looks to reduce dependence on Taiwanese assemblers spearheaded by Foxconn. 

The company's goal is to ship 40-45% of iPhones from India, vs the current single-digit percentage, according to TF International Securities analyst, Ming-chi Kuo. Vietnam is also expected to shoulder more of the manufacturing of other Apple products, such as AirPods, smartwatches and laptops. 

Read more ....  

Update: Apple Speeds Up Plans to Move Production Away from China (Mac Observer)  

WNU Editor: It is not going to be easy. China has benefits for large companies like Apple that other countries cannot match. China is also now positioned to benefit from cheap and reliable Russian energy exports after the EU's decision to end this trade with Moscow. This shift in energy markets has huge geo-economic consequences that I do not think the West has properly calculated. 

And while places like India look tempting for Apple and other multinational companies, I have visited India more than once, and there are even more political/social/and economic problems in that country than China.

Foxconn’s Flagship iPhone Plant In China Rocked By Protests

 

CNBC: Huge Foxconn iPhone plant in China rocked by fresh worker unrest 

* Hundreds of workers joined protests at Foxconn’s flagship iPhone plant in China, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. 

* The trigger for the protests, which began early on Wednesday, appeared to be a plan to delay bonus payments, many of the demonstrators said on livestream feeds. 

Hundreds of workers joined protests at Foxconn’s flagship iPhone plant in China, with some men smashing surveillance cameras and windows, footage uploaded on social media showed. 

The rare scenes of open dissent in China mark an escalation of unrest at the massive factory in Zhengzhou city that has come to symbolize a dangerous build-up in frustration with the country’s ultra-harsh COVID rules as well as inept handling of the situation by the world’s largest contract manufacturer.  

Read more ....  

WNU Editor: It looks like the Chinese are getting more frustrated with Beijing's harsh Covid rules. Throw in bad working conditions and poor pay, you have a powder-keg for unrest. 

Foxconn’s Flagship iPhone Plant In China Rocked By Protests  

Protesting workers beaten at Chinese iPhone factory -- AP 

China Covid: Angry protests at giant iPhone factory in Zhengzhou -- BBC  

Workers and police clash in huge protest at COVID-hit Chinese iPhone factory in Zhengzhou -- ABC News Australia 

Huge Foxconn iPhone plant in China rocked by violent protests -- CNA  

Workers at the world’s largest iPhone factory in China clash with police, videos show -- CNN  

Violent Protests Erupt at Apple’s Main iPhone Plant in China -- Bloomberg

According To Indian Officials Apple Is Looking Into Shifting $40 Billion Of Production From China To India

The purported shift in production comes after the coronavirus pandemic that began in Wuhan, China, caused major disruptions in tech supply chains. Pictured: An Apple factory in China

Daily Mail: Apple is looking into shifting $40billion of production from China to India after coronavirus disrupted tech supply chains, report claims

* Apple is in talks with Indian officials about producing up to $40billion worth of phones through local manufacturers, Indian Economic Times reported Monday
* Tech analysts say the move could make Apple India's largest exporter
* It comes as the coronavirus pandemic that began in Wuhan, China, caused major disruptions in tech supply chains

Apple is considering moving a fifth of its production from China to India, a new report claims.

The tech giant is in talks with Indian officials about producing up to $40billion worth of smartphones over the next five years through manufacturers Wistron and Foxconn, according to the India's Economic Times.

The move - which could make Apple India's largest exporter - comes as the coronavirus pandemic that began in Wuhan, China, caused major disruptions in tech supply chains.

Read more ....

WNU Editor: India is not an easy place to do business. But the move to decouple away from China is clearly underway.

President Trump Accuses Apple Of Refusing To Unlock iPhones Used By 'Killers And Drug Dealers'

Daily Mail: Trump accuses Apple of refusing to unlock iPhones used by 'killers and drug dealers' after AG Bill Barr demanded it gives access to phones of Pensacola Navy base gunman

* President Donald Trump attacked Apple on Twitter Tuesday
* He said Apple officials 'refuse to unlock phones used by killers, drug dealers and other violent criminal elements'
* 'They will have to step up and help our great Country, NOW!' he added
* The tweet came the day after Attorney General William Barr urged Apple to help FBI investigators crack two iPhones used by gunman Mohammed Alshamrani
* The FBI has been unable to access the phones as they are locked and encrypted
* Barr accused Apple of refusing to provide 'substantive assistance'
* Apple responded by saying it rejected that characterization but did not say that it would unlock the phones
* Barr's latest appeal for Apple's cooperation marked an escalation of the DOJ's ongoing fight with the tech giant over personal privacy vs public safety
* The attorney general indicated that he intends to use the Alshamrani case to push for a solution to the DOJ's struggle to get around Apple security features

President Donald Trump accused Apple of refusing to unlock iPhones used by criminals one day after his attorney general demanded that the company help FBI investigators gain access to devices used by the gunman in a mass shooting at a Florida Navy base.

'We are helping Apple all of the time on TRADE and so many other issues, and yet they refuse to unlock phones used by killers, drug dealers and other violent criminal elements,' Trump wrote on Twitter Tuesday. 'They will have to step up to the plate and help our great Country, NOW!'

The tweet came on the heels of US Attorney General William Barr's call for Apple to cooperate with the FBI - which has been struggling to get past the encryption on two iPhones belonging to Saudi military trainee Mohammed Alshamrani.

Read more ....

WNU Editor: This is why Apple is refusing to cooperate .... Trump wants Apple to unlock the Pensacola shooter's iPhones. Here's why it won't (CNN). Here is an easy prediction. One day a crime that is beyond horrible will be committed that could have been prevented if an iPhone's encryption was broken. That is when legislation will be passed that will force Apple and other smart phone manufactures to comply with DoJ demands to have a phone unlocked when subpoenaed.

More News On President Trump Accusing Apple Of Refusing To Unlock iPhones

Trump criticizes Apple's encryption stance on Pensacola phones -- Reuters
Trump slams Apple for refusing to unlock iPhones of suspected criminals -- CNBC
Trump tears into Apple for refusing to unlock Pensacola shooter's cell phones -- Politico
Trump launches fresh attack on Apple over privacy -- BBC

Apple's Apps Shows Crimea As Part Of Russia

Screenshot Apple Maps

Daily Mail: Apple changes its Crimea map to show the annexed peninsula as part of Russian territory after bowing to Moscow's demands

* US tech giant Apple has recognised Crimea as Russia's sovereign territory
* Russian lawmakers announced the change proudly in the parliament Wednesday
* Russia annexed Crime in 2014 to widespread condemnation from the US and EU
* When Apple Maps is used in the UK the Crimea appears not to belong to a state

Apple has changed its Crimea map to show that the annexed peninsula is part of Russia's territory after bowing to Moscow's demands.

Russian legislators proudly announced that the US tech giant had complied with their demands in the lower parliament, the State Duma, on Wednesday.

The Black Sea peninsula and its largest cities of Sevastopol and Simferopol are now displayed as Russian territory on Apple's maps and weather apps when used in Russia.

Crimea does not appear to be part of any country when these apps are used in UK.

Read more ....

WNU Editor: Ukraine is protesting .... Ukraine denounces Apple for calling Crimea part of Russia in apps (Reuters).

More News On Apple's Apps Showing Crimea A Part Of Russia

Apple changes Crimea map to meet Russian demands -- BBC
Apple Complies With Russian Request to Change Crimea Map -- Moscow Times/Reuters
Apple's Apps Show Ukraine's Crimea As Part Of Russia -- RFE
Apple Maps in Russia shows Crimea as part of Russia after Moscow complaints -- The Hill
Apple alters Maps and Weather to show Crimea as a Russian territory -- The Verge
Apple tweaks Crimea to be part of Russia in apps; Ukraine says tech giant 'doesn't give a damn' -- ABC News Online
Facebook's ex-security boss Alex Stamos slams Apple as 'shameful' for changing its maps to suit a demand from the Russian government -- Business Insider

Is California Trying To Grab A Part Of The $350 Billion That Apple Wants To Repatriate Back To The U.S. From Overseas

Apple CEO Tim Cook says the iPhone maker's repatriated profits will result in a $38 billion US tax payment and generate $350 billion in economic activity

WNU Editor: Just a side story, but it is very revealing that after Apple made public it's intention to repatriate back to the U.S. $350 billion from overseas... money that will be given as bonuses to its employees and the rest invested to create tens of thousands of jobs .... Apple To Repatriate $350 Billion From Overseas Back To The U.S. Economy (January 17, 2018) .... you then have this insane push from California lawmakers ..... ‘Time for middle class tax justice’: California corporate tax bill offsets Trump cuts (Sacramento Bee). In short .... these lawmakers want to grab a good chunk of the money that Apple wants to bring back to the country .... and they want to do it because they can.

Apple To Repatriate $350 Billion From Overseas Back To The U.S. Economy

Apple CEO Tim Cook says the iPhone maker's repatriated profits will result in a $38 billion US tax payment and generate $350 billion in economic activity

CNBC: Apple announces plans to repatriate billions in overseas cash, says it will contribute $350 billion to the US economy over the next 5 years

* Apple says the new tax law will help it will contribute $350 billion to the U.S. economy over the next five years.
* It says it will create 20,000 new jobs and open a new campus.
* Apple expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States.

Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy in part because of the new tax law.

The headline from Apple is that it will make a $350 billion "contribution" to the U.S. economy over the next five years, although it's unclear exactly how the company came to that number.

The company also promised to create 20,000 new jobs and open a new campus.

It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash.

Read more ....

Update: Apple says will pay $38 bn in taxes on repatriated profits (AFP)

WNU Editor: Apple is already the largest taxpayer in the U.S.. One can only imagine the enormous economic benefits that such a transfer of wealth from overseas to the U.S. economy will bring .... and I am willing to bet that Apple will not be the only company doing this. The global economic and geopolitical impacts from changes in U.S. tax and regulatory should never be underestimated .... and Apple is a perfect example of this point.

Who Would Pay $999 U.S. For A Smartphone?

CNN: Apple's iPhone X: Face ID, no home button, $999

Ten years after the launch of the first iPhone, Apple has revealed the iPhone X.

It has no home button, scans your face to log you in and costs $999.

The company unveiled its anniversary edition smartphone, alongside the iPhone 8 and its bigger sibling, the iPhone 8 Plus. To introduce the iPhone X, Apple CEO Tim Cook uttered the classic line at its annual press conference: "One more thing."

"We have great respect for these words and don't use them lightly," said Cook, adding the new phone would set the path for technology for the next decade.

Read more ....

WNU Editor: Watched the Apple live event .... and I said to myself .... no way am I going to spend $1000 USD ($1400 Canadian with tax) on a smart phone. Within the past hour I received the following texts. The GF wants one for Christmas. Her daughters (whose birthday's are coming up) want one as a gift. My brother .... who lives in Silicon Valley .... just told me that these phones would be a great gift for his family for Christmas. And 3 of my cousins in Russia want to know if I can buy a few and ship it to them. #!@$#$@#!$%

Update: Of course .... no one is offering to give me this phone as a gift for Christmas.  :(

Citing U.S. Sanctions, Apple Is Removing Its Popular Apps In Iran

New York Times: Apple, Citing U.S. Sanctions, Removes Popular Apps in Iran

TEHRAN — Officially, Apple has no presence in Iran. Because of American sanctions against the country, the company’s iPhones are not legally available for sale here, and Apple does not offer a version of its App Store in the country.

That has not stopped Iranians from snapping up millions of iPhones smuggled in from places like Dubai and Hong Kong. Nor has it kept Iranian app developers from creating thousands of apps for local users and offering them through App Stores outside Iran.

Now, Apple is moving aggressively to shut down Iranian apps. The crackdown here follows the company’s recent removal of apps in China that allowed residents to evade censors and gain access to the global internet, and were deemed illegal by the Chinese government.

On Thursday, Apple removed Snapp, a ride-hailing app similar to Uber that is popular in Iran, from its app stores. That followed the removal in recent weeks of apps for food delivery, shopping and other services.

In a message to Iranian developers whose apps were affected by the ban, Apple said, “Under the U.S. sanctions regulations, the App Store cannot host, distribute or do business with apps or developers connected to certain U.S. embargoed countries.”

Read more ....

WNU Editor: If you are an Apple user in Iran and who enjoys Apple apps .... and apparently there are millions of Apple users in Iran .... this hurts. Not surprising, Iran wants to now sue Apple .... Legal action against Apple on agenda: Iran's telecom minister (Tehran Times)

More News On Apple Removing Its Popular Apps In Iran

Apple removes Iranian apps from App Store, cites US sanctions -- Apple Insider
Apple Has Started to Remove Iranian Apps Over Sanctions -- Fortune
Apple Cuts Iran Apps From Store Due to Sanctions, Founders Say -- Bloomberg
Apple removes popular apps in Iran due to US sanctions -- The Verge
Iran media report Apple shuts down Iranian apps -- Phys.Org