Bloomberg: Apple's 5G iPhone Still on Schedule for Fall Launch, But Future Products Could Be Delayed

[MacRumors]

Apple's 5G iPhone is still on track to launch within the company's typical annual fall release schedule, according to a new Bloomberg report on filed on Monday.

Signs are that Apple's Chinese-centric manufacturing -- of which Hon Hai is the linchpin -- is slowly getting back on track. The next iPhones with 5G wireless capabilities remain on schedule to launch in the fall, partly because mass production isn't slated to begin until the summer, people familiar with matter have said.

Foxconn (aka Hon Hai) was forced to postpone the reopening of its main iPhone-assembly plant in Zhengzhou as strict quarantine measures remained in force, however the iPhone maker has reportedly raised signing bonuses significantly in order to attract the new workers it needs to assemble its products.

The report aligns with another one published by Bloomberg earlier the month that claimed Apple's next flagship iPhone launch is still on schedule, partly because mass production isn't due to begin until May.

Since then, we've seen mixed reports on the current state of Apple's 5G iPhone production timeline. Last week, Reuters reported that production ramp-up for the new phones has been postponed, but included the caveat that it was still possible that the iPhones could launch as scheduled.

An earlier report from Nikkei suggested that Apple is considering delaying the 2020 iPhone launch by months, but that no decision had been made yet, while DigiTimes claimed suppliers who make printed circuit boards for the ?iPhone? had not been asked to postpone volume production for components designed for the 2020 ?iPhone.

Apple is expected to release four so-called iPhone 12 models in the fall, including one 5.4-inch model, two 6.1-inch models, and one 6.7-inch model. All of the devices are rumored to include OLED displays and support 5G, and they may sport a new design that includes more of a flat edged metal frame like the iPad Pro or ?iPhone? 4.

Beyond the 2020 iPhone, today's report cautions that future Apple devices could yet be delayed because of disruptions to Apple's wider supply chain network - Foxconn is just one part of Apple's manufacturing partners, while the tech giant usually spends "months or even years" sourcing components around the world, notes Bloomberg.

According to a prediction made in December by analyst Ming-Chi Kuo, Apple plans to launch a high-end iPhone without a Lightning connector in the second half of 2021. The device will supposedly offer a "completely wireless experience," although given the current state of play around the globe, whether it will arrive on schedule is another matter.

In other news, Foxconn posted a $1.58 billion profit for the fourth quarter of 2019, down 24 percent year on year. The decline was linked to trade tensions between the U.S. and China and weakened smartphone demand globally, coming before China's manufacturing industry felt the impact of the viral outbreak.

Article Link: Bloomberg: Apple's 5G iPhone Still on Schedule for Fall Launch, But Future Products Could Be Delayed

 

[Justin Cymbal]

I'm planning on getting it!

I skipped the iPhone 11 to hold out for the 5G

Also looking forward to the camera improvements in the 2020 iPhone

 

[Freeangel1]

I may just settle on a refurbished iPhone 11 Max Pro at more than half off a new 12
walking around with a $1500 phone scares me
especially with all the projected people to be out of work and no jobs due to this virus.
I can see iPhone physical robberies happening.
A New iPhone can fetch a lot of money to a thief. especially a $1500 one.

 

[sshambles]

This year might just be the only year that the "iPhone may/might/could be delayed" rumour might actually have some validity to it.

 

[Takeo]

The detail about signing bonuses to attract new workers concerns me somewhat. If people have well-founded reasons to be uncomfortable going back to work and need to be enticed to do so, I’d rather Apple respect those feelings and delay as much as is necessary. Some things are more important than a new phone.

 

[Lerxt]

I was going to get it to replace my 10xs but it’s unlikely to offer anything much better. Might just wait

 

[44267547]

Yeah, well...alot can change between now and September. China is on the rebound, which is good, but things have Not stabilized in North America. If anything, I still suspect we might see a later post launch like mid/late November, but it’s still so early to tell given the current situation.

No matter what, I doubt the ‘2020 iPhone’ is really on the consumers mind right now, it’s probably more about saving their resources/money v.s. focusing on upgrading their phone, which will probably be a last resort.

 

[davidec]

I may just settle on a refurbished iPhone 11 Max Pro at more than half off a new 12
walking around with a $1500 phone scares me
especially with all the projected people to be out of work and no jobs due to this virus.
I can see iPhone physical robberies happening.
A New iPhone can fetch a lot of money to a thief. especially a $1500 one.

Not sure that type of thief will know the difference between an 11&12. If they’re gonna do you for a phone they’ll do you for a phone!

 

[DelayedGratificationGene]

Can’t wait for 5G and maybe an AR product tied into it. Also wondering what the new health aspects to the Apple Watch will be after our favorite virus showed up
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The detail about signing bonuses to attract new workers concerns me somewhat. If people have well-founded reasons to be uncomfortable going back to work and need to be enticed to do so, I’d rather Apple respect those feelings and delay as much as is necessary. Some things are more important than a new phone.

Or maybe the bonus is just to show Apples appreciation for all the hard work?
[automerge]1585565853[/automerge]

Yeah, well...alot can change between now and September. China is on the rebound, which is good, but things have Not stabilized in North America. If anything, I still suspect we might see a later post launch like mid/late November, but it’s still so early to tell given the current situation.

No matter what, I doubt the ‘2020 iPhone’ is really on the consumers mind right now, it’s probably more about saving their resources/money v.s. focusing on upgrading their phone, which will probably be a last resort.

No you’re forgetting how quickly they forget. Recency bias is what you are experiencing right now

 

[Cristim74]

The detail about signing bonuses to attract new workers concerns me somewhat. If people have well-founded reasons to be uncomfortable going back to work and need to be enticed to do so, I’d rather Apple respect those feelings and delay as much as is necessary. Some things are more important than a new phone.

They haven't specifically mentioned that this bonus is financed by Apple. It may just as well be offered by Foxconn.

 

[Caliber26]

Is the smallest version rumored to lack any of features available on the biggest model?

 

[I7guy]

The detail about signing bonuses to attract new workers concerns me somewhat. If people have well-founded reasons to be uncomfortable going back to work and need to be enticed to do so, I’d rather Apple respect those feelings and delay as much as is necessary. Some things are more important than a new phone.

You shouldn’t be concerned about incentivizing workers to get production moving, after all there could be a shortage of those types of workers. Foxconn or Apple is not holding a gun to their collective heads, which is what you should be concerned about for example if that were the case.

 

[MacBH928]

what I am really scared of is build quality...
I don't want to see green spots or faulty batteries. The virus pandemic will sure affect production.

 

[I7guy]

what I am really scared of is build quality...
I don't want to see green spots or faulty batteries. The virus pandemic will sure affect production.

Yes production is effected, but no one knows if quality will be effected.

 

[tridley68]

This is great news with all the happenings around the 🌎world

 

[otternonsense]

I'm aware that
- We're in the midst of a pandemic with a looming global recession and crushed purchasing power for many
- The (already strained) affordability of Apple's devices will be put to the test
- Priorities may have shifted from accessorising with Apple's latest at the moment
- Consumers may not care about 5G right now?

Still:
Can we PLEASE remove that notch already, at least from a future-product POV?

 

[I7guy]

I'm aware that
- We're in the midst of a pandemic with a looming global recession and crushed purchasing power for many
- The (already strained) affordability of Apple's devices will be put to the test
- Priorities may have shifted from accessorising with Apple's latest at the moment
- Consumers may not care about 5G right now?

Still:
Can we PLEASE remove that notch already, at least from a future-product POV?

One would have heard rumors about a notchless phone. So my guess is for the next two years iterations, the notch is here(edit:sp) to stay. Of course, anything can happen.

 

[whatta]

I hope the iPad Pro is coming this fall with new CPU (A14X)

 

[dantracht]

I expect this is going to be in question for some time.

 

[citysnaps]

I don't see why Apple isn't moving production back to America and sourcing parts exclusively from American companies.

The heavily government-subsidized infrastructure and workforce in China that can manufacture, test, and ship 600,000+ iPhones phones per day for Apple, with turn-on-a-dime volume adjustments that can handle greatly increased holiday and new release demands, does not exist in the United States.

Also, if that manufacturing capacity did exist in the United Stares, the price premium Apple would need to charge would make their phones not competitive with phones from other companies who still manufacture in China.

 

[rizzo41999]

Been holding out with my 7+ to upgrade to this. Excited!

 

[IPPlanMan]

The heavily government-subsidized infrastructure and workforce in China that can manufacture, test, and ship 600,000+ iPhones phones per day for Apple, with turn-on-a-dime volume adjustments that can handle greatly increased holiday and new release demands, does not exist in the United States.

Also, if that manufacturing capacity did exist in the United Stares, the price premium Apple would need to charge would make their phones not competitive with phones from other companies who still manufacture in China.

Apple could do it if it wanted to. It just likes its profit margins too much, that's all.

Moving production to the USA would be a tremendous jobs creator. You'd actually see a substantial jump in GDP. That's how big of an effect it would be.

However, there's something else that your statement reveals: that it would cost more here. You mean that it would reflect the reality of a fair wage with worker protections vs the worker abuse that occurs in China?

Apple could readily eat the additional cost and make these products here in the USA. They just choose profits over people, that's all. You underestimate the production efficiencies that could be reached in the USA.

 

[calstanford]

It's not gonna sell. Absolutely nobody needs an iPhone with incremental features this year.

Wait a year. Bring out a better bigger new iPhone when we all have survived.

 

[GuruZac]

Might want to dramatically lower forecasts of sales. The virus part will be with us in a big way for months. The economic implications will be with us for years. $1000+ phones will not be a top priority for many people for a while. Especially when other than 5G, they’re incremental updates to what’s currently available.

 

[citysnaps]

Apple could do it if it wanted to. It just likes its profit margins too much, that's all.

Moving production to the USA would be a tremendous jobs creator. You'd actually see a substantial jump in GDP. That's how big of an effect it would be.

However, there's something else that your statement reveals: that it would cost more here. You mean that it would reflect the reality of a fair wage with worker protections vs the worker abuse that occurs in China?

Apple could readily eat the additional cost and make these products here in the USA. They just choose profits over people, that's all. You underestimate the production efficiencies that could be reached in the USA.

"Apple could do it if it wanted to. It just likes its profit margins too much, that's all."

Oh, is that all? Perhaps you can speak with some authority on Apple's reasonable GPMs (along with NPMs), that have decreased over the years, and what functions they support internal to Apple?


"Moving production to the USA would be a tremendous jobs creator. You'd actually see a substantial jump in GDP. That's how big of an effect it would be."

How would that happen and who would pay for it? Where would the hundreds of thousands of people come from? Subsidized by the US government, similar to China? Would it take the many years that China has invested to get to the point where they are now. How many years for the US?


"However, there's something else that your statement reveals: that it would cost more here. You mean that it would reflect the reality of a fair wage with worker protections vs the worker abuse that occurs in China?"

Can you speak with authority on Chinese cost of living in concert with the wages production workers earn. Please give some concrete details on a handful of typical costs (over a variety of categories), along with wages.


"Apple could readily eat the additional cost and make these products here in the USA. They just choose profits over people, that's all. You underestimate the production efficiencies that could be reached in the USA."

Readily... It sounds like you've engaged in some detailed analyses to come to that conclusion. Can you report specific details, costs, timelines, populations, and other factors to support your assertion, along with the added costs to the consumer, with detail? Also, pleaser discuss these production efficiencies, in detail, in the US that you believe I underestimate.

From your post it sounds like your an expert on matters such as these and being able to make blanket assertions. Can you talk about your education and hands-on experience that gives you that ability? Perhaps it is similar to Tim Cooks?