Foxconn Expected to Assemble Bulk of 2018 iPhones

[MacRumors]

Taiwanese manufacturer Foxconn will assemble the majority of Apple's widely rumored trio of new iPhones expected to launch in 2018, according to the Taipei Times, citing research from Fubon Securities.

Foxconn, formally known as Hon Hai, will reportedly assemble all of the second-generation iPhone X, 90 percent of the so-called iPhone X Plus, and 75 percent of an all-new, lower-priced 6.1-inch iPhone.

Taiwanese manufacturer Pegatron is said to fulfill the remaining orders:

Hon Hai has been selected to assemble the bulk of the new iPhones, including all of the premium 5.8-inch OLED model and 90 percent of the 6.5-inch OLED phones, as well as 75 percent of the 6.1-inch LCD model, with the remainder given to Pegatron, the report said.

Wistron, another Taiwanese manufacturer, will not assemble any of the new 2018 iPhones, according to the report.

Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple.

Last month, respected Apple analyst Ming-Chi Kuo said all three new iPhones will be both announced and made available to order this September. In a previous research note, he indicated that Apple has resolved the manufacturing challenges that resulted in the iPhone X's delayed launch and supply shortage.

Article Link: Foxconn Expected to Assemble Bulk of 2018 iPhones

 

[WannaGoMac]

In other news today, it's been reported that the sky is still blue.

 

[KPandian1]

No assembly in the USA - immature plant and too expensive.

 

[Bornee35]

"Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple."

Those sweet sweet profit margins.

 

[travelsheep]

they already look dated.

 

[lkrupp]

No assembly in the USA - immature plant and too expensive.

No assembly in Europe either, or any other developed nation mainly because of wages and labor laws. Not saying those are bad but that’s the reality. We rely on the impoverished of the world to make our gadgets, our clothing, our toys, our home furnishings. Any assembly that comes here will be robotic in nature with a few high wage jobs to maintain and program the robots.

We can already see where the next factories will be built when China’s standard of living and wages increase to a point. India my friends, India. Apple has already started to assemble in India to avoid Indian tariffs.

 

[thenewyorkgod]

Lack of SE2 rumors is killing me.

 

[Dilster3k]

they already look dated.

I mean they are working on the technologies for iPhone 13 right now.

 

[macduke]

The iPhone 8 was $50 more expensive than the iPhone 7. I'm not sure if it's a good idea to release this new iPhone with a $100 price increase after only another year. I get that it's a bigger device, but many people out there don't care and just want to get a new, standard iPhone without dropping $800. Hopefully they also release a redesigned iPhone SE with a 5" display that is nearly the same size with the reduced bezels. They could even increase the price on that and make it like a new base model and then a smaller price increase would balance things out a bit more. What I think would work:

• iPhone SE Second Gen 5" - $599
• iPhone 6.1" - $749
• iPhone X Second Gen 5.8" - $899
• iPhone X Plus 6.5" - $1049 or $1099

Plus the usual storage upgrade tiers. This will raise the average selling price of the iPhone across the board while providing plenty of options. Two base models that are a little smaller and two premium models that are a little larger and have more advanced features.

 

[78Bandit]

"Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple."

Those sweet sweet profit margins.

I hope Ming's sources are more accurate with a $600 - $700 price range.

 

[ronincse]

Hold on a second here: they are saying that Foxconn, the company that has been making most of the iPhones for most of the iPhone's history, will make most of the iPhones this year!?! WHAT?? On a related note I heard from a source that Apple will write most of the code for iOS 12

 

[Iconoclysm]

they already look dated.

You know they're just mockups, right?

 

[nviz22]

I think the LCD model will come in at $699 since it replaces the iPhone 8 in terms of the devices. It’s meant to be the more entry level 2018 iPhone like the 8 was the entry level 2017 device. Singular camera, no 3D Touch, no stainless steel frame? Seems like a compromise. The 8 compromises with less RAM, a singular rear camera, and other differences.

 

[polee]

Why am I so no looking to the 2018 iPhones? They look so 2017ish. Please please release some new MacBook and MacBook Pros, with an improved keyboard and useful ports...

 

[JPack]

No assembly in Europe either, or any other developed nation mainly because of wages and labor laws. Not saying those are bad but that’s the reality. We rely on the impoverished of the world to make our gadgets, our clothing, our toys, our home furnishings. Any assembly that comes here will be robotic in nature with a few high wage jobs to maintain and program the robots.

We can already see where the next factories will be built when China’s standard of living and wages increase to a point. India my friends, India. Apple has already started to assemble in India to avoid Indian tariffs.

If it was about labor costs, assembly would be done in India, Africa, and Bangladesh on day one.

Tim Cook has said it’s about labor skill and supply chain that’s only available in China. When was the last time Europe made high tech electronics?

 

[Applemaniac7]

I mean they are working on the technologies for iPhone 13 right now.

I mean, how bizarre to start a sentence with i mean.. can I ask? What was your previous comment that you are clarifying?

Ps. I am being pedantic.. the overuse of the phrase I mean is barely acceptable in spoken word, but I can see that if its that or stuttering then it just about works. But to actually type it out is plain bizarre.... Please don't do it again...

 

[JayJohnPaul]

Lack of SE2 rumors is killing me.

We won’t be seeing or hearing about the SE2 anytime soon, not this year at least. Hopefully next year!

 

[palebluedot]

So is Touch ID for sure gone? I don't want to use Face ID.

 

[Fender2112]

Too bad there are no new Macs for someone to assemble.

 

[ksec]

"Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple."

Those sweet sweet profit margins.

Which is excluding about the $100 patents cost to every iPhone 8 plus, Along with a wholesale price of iPhone 10% lower then the $799 ( Apple is extremely stringent about it ). Distribution and Channel cost involves are not covered by this 10%, and the 10% "profits" Apple sold through its own retails likely cover their Retail rent and Retail Staff. So this get cancels out.

Around ~$20 Per Lightning Cable, EarPod, Power Adaptor, Environmental Friendly Packaging, and Shipping.

Which leaves you roughly $320 to cover R&D of SoC, WiFI & Bluetooth Chip, their own NAND / SSD Controller etc, Software R&D, Operational Expenses along with marketing.

As a matter of fact the above estimate are likely to be too conservatives, EST BOM cost are $299+, Patents $120+, $25+ for Sub Parts. But the profits aren't ridiculous high as most imagine. It is actually inline with most luxury brands, just no other product on earth has manage to sell luxury to 250M customer every single year.

 

[KPandian1]

We can already see where the next factories will be built when China’s standard of living and wages increase to a point. India my friends, India. Apple has already started to assemble in India to avoid Indian tariffs.

No air pollution or labor standards to worry about, more so in India today than China.

If it was about labor costs, assembly would be done in India, Africa, and Bangladesh on day one.

The assembly skills are what is known as repetitive skills learned over a very short period, aka, monkey skills, muscle memory skills, etc.

It was and is about controlled and willing labour; supplied in China unfettered by the government when Apple started. Now India is now moving away from Nehru Socialism/communism to quasi open market/capitalism, AND, is insisting that its vast market is not open to Apple unless products sole there are produced locally.

The host nation should also open doors more easily with bribes.

The skills of putting together prefabricated boards and housing, connecting the wires, etc. are not highly skilled sophisticated training required functions. The major work is done by robots.

On top of the training, they are paid well above local market wages, housed in cells and are willing to work ~12-14 hours everyday - everything that will not pass the test in the West.

 

[ksec]

I hope Ming's sources are more accurate with a $600 - $700 price range.

It will be interesting to see how Apple plays with its lineup this year. The current iPhone 7 Plus starts at $669, which in normal circumstance would have been the price for iPhone 8 Plus this year. If this "affordable" iPhone X is priced and occupied the $699 slot, may be they will simply cancel iPhone 8 this year and let iPhone 7 Plus moves to iPhone 6 Plus prices @ $549?

I mean if iPhone X 5.8" is going to be $899, and 6.5" at $1099.
It is a little hard for me to think the 6.1" LCD, with single camera to price at only $150 cheaper.

 

[JPack]

The assembly skills are what is known as repetitive skills learned over a very short period, aka, monkey skills, muscle memory skills, etc.

It was and is about controlled and willing labour; supplied in China unfettered by the government when Apple started. Now India is now moving away from Nehru Socialism/communism to quasi open market/capitalism, AND, is insisting that its vast market is not open to Apple unless products sole there are produced locally.

The host nation should also open doors more easily with bribes.

The skills of putting together prefabricated boards and housing, connecting the wires, etc. are not highly skilled sophisticated training required functions. The major work is done by robots.

On top of the training, they are paid well above local market wages, housed in cells and are willing to work ~12-14 hours everyday - everything that will not pass the test in the West.

Based on your logic, Tesla wouldn't be opening Gigafactory in China.

AirPods would be manufactured in the U.S. since there's so little assembly required, right? Instead Tim Cook admitted Apple worked with Luxshare-ICT in China to develop them due to their expertise in developing small acoustic devices.

The U.S. and Europe simply no longer have the technical skills required to develop sophisticated electronics. How can Huawei develop complete mobile LTE and 5G chipsets while Apple is still struggling between Intel and Qualcomm?

Your thinking is from about 2 or 3 decades ago when China hadn't demonstrated any capabilities. Times have changed a lot.

 

[44267547]

Lack of SE2 rumors is killing me.

Because the iPhone SE two is not a reality, that’s why. Additionally, the four-inch iPhone demographic is marginal at best when the core demographic prefers larger iPhone displays.

I believe the SE was a one time offering that Apple originated to be an affordable entry-level iPhone, and it was successful in other countries where smart phones tend to be higher price. If the iPhone SE ever resurfaces, it won’t resemble anything like it is now, but I do believe that Apple will retain the SE in Apples line up through 2018 and discontinue it in 2019, which would make it three years old by March 2019, in which case we will know if there is any successor to the original iPhone SE Around that time frame.

 

[PickUrPoison]

I hope Ming's sources are more accurate with a $600 - $700 price range.

Ming has been all over the place with the iPhone 9 pricing. He’s taken CYA to another level, with pricing claimed variously at anywhere from $550-800.

I suppose he will be “right” since I can’t imagine it being below $550 or above $800.