Apple Continues to Diversify Suppliers Ahead of iPhone 14 Launch

[MacRumors]

Apple has added to its list of suppliers for the iPhone 14 series in a bid to avoid potential supply chain shortages when mass production of the devices begins, according to analyst Ming-Chi Kuo.

In a series of tweets, Kuo said components from SG Micro have passed quality certification for the high-end iPhone 14 models, meaning the Chinese company has been greenlighted to supply components for the iPhone 14 Pro and iPhone 14 Pro Max.

SG Micro specializes in integrated circuits, and Apple will use its power management integrated circuitry in the upcoming iPhones. Kuo notes that this is the first time SG Micro has provided components for high-end iPhones, implying that its technical capabilities have reached the "tier-1 level" required for use in premium consumer electronics.

Kuo recently said that some iPhone 14 components such as display panels are facing supply chain issues, but the analyst believes the issues will have a limited impact on upcoming mass production of iPhone 14 models, which are expected to be announced in September.

The lineup is expected to include the 6.1-inch iPhone 14, 6.7-inch iPhone 14 Max, 6.1-inch iPhone 14 Pro, and 6.7-inch iPhone 14 Pro Max, but there will be no "mini" device this year.

Article Link: Apple Continues to Diversify Suppliers Ahead of iPhone 14 Launch

 

[djcerla]

They need a lot of parts, indeed: the pent-up demand for the 14 Max is… maximal.

 

[BootsWalking]

In a series of tweets, Kuo said components from SG Micro have passed quality certification for the high-end iPhone 14 models, meaning the Chinese company has been greenlighted to supply components for the iPhone 14 Pro and iPhone 14 Pro Max.

That's like McDonald's diversifying its menu by adding an extra-large fries to it.

 

[killhippie]

So they are saying a company which before made not so great integrated circuits now just about makes better ones, hence loads of iPhone 14 Pros will have kinda okay integrated circuits, a test for SG Micro to get it right. Nothing like gambling your flagship phones on a new supplier in the mix, rather than long established companies known for their quality in your top of the line range, rather than using SG Micro as a test bed in your non pro line up just to be cautious. Yep that seems totally logical...

 

[ian87w]

So they are saying a company which before made not so great integrated circuits now just about makes better ones, hence loads of iPhone 14 Pros will have kinda okay integrated circuits, a test for SG Micro to get it right. Nothing like gambling your flagship phones on a new supplier in the mix, rather than long established companies known for their quality in your top of the line range, rather than using SG Micro as a test bed in your non pro line up just to be cautious. Yep that seems totally logical...

Well, if something went wrong, Apple can simply say the user is using the phone wrong and deny anything. And then silently release a repair program for specific small set of batches for 2 years (typical Applecare length, so nobody would benefit beyond the standard warranty). While the money is pouring in, expense is minimized, while future profit is increased through customers wanting repairs beyond the repair program and customers upgrading sooner than they planned.

Isn't Tim Cook smart?

 

[icanhazmac]

Between BOE screens and this… I’ll keep my 8.

 

[Shirasaki]

Well, if something went wrong, Apple can simply say the user is using the phone wrong and deny anything. And then silently release a repair program for specific small set of batches for 2 years (typical Applecare length, so nobody would benefit beyond the standard warranty). While the money is pouring in, expense is minimized, while future profit is increased through customers wanting repairs beyond the repair program and customers upgrading sooner than they planned.

Isn't Tim Cook smart?

This sounds so convincing I almost thought this had happened before.

 

[ilikewhey]

Between BOE screens and this… I’ll keep my 8.

yeah pretty sure no one will give a 2nd thought when the 14 comes out, just like every other iphone that had a problem.

 

[CarAnalogy]

Well, if something went wrong, Apple can simply say the user is using the phone wrong and deny anything. And then silently release a repair program for specific small set of batches for 2 years (typical Applecare length, so nobody would benefit beyond the standard warranty). While the money is pouring in, expense is minimized, while future profit is increased through customers wanting repairs beyond the repair program and customers upgrading sooner than they planned.

Isn't Tim Cook smart?

Well I gotta say when my AirPods Pro developed an issue suspiciously like this, they launched a repair program for three years from date of purchase, and I got mine replaced with no hassle other than having to go to the Apple Store.

Granted they didn't publicize the program at all, I only knew about it because of good ol' MacRumors.

 

[Wags]

So they are saying a company which before made not so great integrated circuits now just about makes better ones, hence loads of iPhone 14 Pros will have kinda okay integrated circuits, a test for SG Micro to get it right. Nothing like gambling your flagship phones on a new supplier in the mix, rather than long established companies known for their quality in your top of the line range, rather than using SG Micro as a test bed in your non pro line up just to be cautious. Yep that seems totally logical...

Just great, how many more phones will I have to return to get the components that I want now. Lol

 

[robd003]

Apple really needs to diversify their manufacturing outside of China. They could be building products in the rest of Southeast Asia so they aren't at the mercy of a single government.

I'd be willing to pay an extra $200 - $300 for my Mac if they had a Made in the USA option available.

 

[flofixer]

I hope this doesn't cause another "does my phone have the samsung or tsmc chip?" issue.

 

[_Spinn_]

Based on the past few years, having a more diverse supply chain is a must.

 

[switz]

FWIW: My 2013 Mac Pro was made in Texas. Wonder if the latest Mac Pros are made here as well?

There was a vendor issue also related to the early brand of SSDs during the transition to becoming all SSD computers. Heck the brand of the HD drives was an issue as well.

 

[q64ceo]

Diversifying in China while there is a chance of a war breaking out over Taiwan is very short sighted if it's a permanent solution.

 

[ian87w]

Apple really needs to diversify their manufacturing outside of China. They could be building products in the rest of Southeast Asia so they aren't at the mercy of a single government.

I'd be willing to pay an extra $200 - $300 for my Mac if they had a Made in the USA option available.

Apple doesn't make their own products. Having assembly factories outside China will depend on the OEMs (eg Foxconn, Pegatron, Quanta, etc).

As for parts, unfortunately, some parts are not that easy to find. Many of these electronics parts are quite specific that only certain companies (many are in Asia/China) are making them. Take example, OLED panels. Majority of the plants making them are in China/Japan/Korea. Simple logistic, if majority of your components come from plants in China, it will be much cheaper and faster assembling your product there instead of shipping the parts to somewhere else.

 

[svish]

Good to hear. Hopefully no delays for any models this year.

 

[Wyckham]

Apple really needs to diversify their manufacturing outside of China. They could be building products in the rest of Southeast Asia so they aren't at the mercy of a single government.

I'd be willing to pay an extra $200 - $300 for my Mac if they had a Made in the USA option available.

"Friend shoring" is a new term used by governments and we should all actively support the idea and policies.

 

[Apple Core]

Apple really needs to diversify their manufacturing outside of China. They could be building products in the rest of Southeast Asia so they aren't at the mercy of a single government.

I'd be willing to pay an extra $200 - $300 for my Mac if they had a Made in the USA option available.

Agree 100%! Scary how the second most valuable company in the world depend solely on China. Tim Cook should be fired.

 

[ian87w]

Well I gotta say when my AirPods Pro developed an issue suspiciously like this, they launched a repair program for three years from date of purchase, and I got mine replaced with no hassle other than having to go to the Apple Store.

Granted they didn't publicize the program at all, I only knew about it because of good ol' MacRumors.

It's getting shorter.
iPhone 6 Plus touch disease repair program: 5 years
iPhone 7 No service repair program: 4 years
iPhone X Touch disease repair program: 3 years
iPhone 12 no sound repair program: 2 years

You see the trend? It's as if Apple just care less and less.

 

[CarAnalogy]

It's getting shorter.
iPhone 6 Plus touch disease repair program: 5 years
iPhone 7 No service repair program: 4 years
iPhone X Touch disease repair program: 3 years
iPhone 12 no sound repair program: 2 years

You see the trend? It's as if Apple just care less and less.

I will admit that relatively recently (especially with the new M2 Macs) Apple is on a bad trajectory towards maximum profits and less value. I hope that stops now. I do think that Tim Cook is more focused on operations and profits than anything, and Steve Jobs himself admitted that he worried about that (“he’s not a product guy”).

We’re in a sad state of the tech world right now. All the original founders of the great companies have moved on or passed on. It’s all about money and politics now.

Slightly off-topic, but in the short period when Steve stepped down and before he died, there was a lot of talk made about “Steve Jobs University” which was supposed to teach Apple leadership to be more like him. Yeah it sounds narcissistic (right up Steve’s alley) but where is it now? We could use a little more of that thinking, at Apple and in the world in general.

 

[ian87w]

I will admit that relatively recently (especially with the new M2 Macs) Apple is on a bad trajectory towards maximum profits and less value. I hope that stops now. I do think that Tim Cook is more focused on operations and profits than anything, and Steve Jobs himself admitted that he worried about that (“he’s not a product guy”).

We’re in a sad state of the tech world right now. All the original founders of the great companies have moved on or passed on. It’s all about money and politics now.

Apple wouldn't stop. Their primary duty is to increase shareholder value, and the pressure of inflation will only push their pricing upwards. And I don't see any backlashes anytime soon as Apple's brand power is extremely strong at this point. Just look at how many people here defending anything Apple did, no matter how absurd.

I agree though, there are less and less of the old team around. Even Schiller is now gone. Craig looked overworked. But I think Apple is trying. That's why we are seeing more and more faces in every keynotes. Apple is probably trying to groom a bunch of people. But we know Tim Cook did make some mistakes in hiring the wrong people for key positions, and it seems some of the effects still lingers.

 

[CarAnalogy]

Apple wouldn't stop. Their primary duty is to increase shareholder value, and the pressure of inflation will only push their pricing upwards. And I don't see any backlashes anytime soon as Apple's brand power is extremely strong at this point. Just look at how many people here defending anything Apple did, no matter how absurd.

I agree though, there are less and less of the old team around. Even Schiller is now gone. Craig looked overworked. But I think Apple is trying. That's why we are seeing more and more faces in every keynotes. Apple is probably trying to groom a bunch of people. But we know Tim Cook did make some mistakes in hiring the wrong people for key positions, and it seems some of the effects still lingers.

Yeah whoever is in charge of software design recently is a big problem, especially on the Mac. They need to take a lesson from Steve’s Return and focus on their core product again. Services is a big distraction. But it pleases Wall Street. That really seems to be the whole problem, they used to be the company that would do the right thing and damn the short term consequences. They don’t have that ”courage” anymore.

 

[switz]

To use the auto world analogy, the Ford Pinto lacked the features of the Lincoln because it was cheaper.

The MBAir is the least expensive Apple laptop. Why is everyone surprised there are less expensive parts inside? If one buys the cheapest model, it will lack the better parts used on a more expensive model. You get what you pay for.

The MBAir is not the powerhouse like the 2021 14"/16" MBPro laptops. Why is anyone surprised? The lowest priced 14" MBPro is currently only a few hundred dollars more than the most probably useful MBAir model which would probably be 24GB Ram and a 1TB SSD. That relatively small incremental increase in price brings the feature set one could need for light pro work.

While the cheapest car got the person from A to B, it was not a power house and lacked really comfortable seats among the many other short comings. The MBA configuration I mentioned above could allow most folks to easily do the basics without throttling. But 8GB and a 256GB SSD MBAir do not a powerhouse make.

 

[1557750]

Won’t be long till ‘Designed in China’ is on the packaging too.