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Apple supply shortage to last into April: sources

  
  Analysis
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Apple will likely miss its schedule for mass producing a more affordable iPhone, while inventories of existing models could remain low until April or longer, despite suppliers in China gradually resuming production amid the coronavirus outbreak, sources familiar with the matter told the Nikkei Asian Review.

Apple had previously planned to release a more affordable iPhone this spring to maintain sales momentum into the first half of the year. Mass production was supposed to start by the end of February, but multiple sources say meeting that target is now very challenging and production could be delayed until sometime in March.

The U.S. tech giant had previously asked suppliers to ready up to 80 million units of iPhones, including up to 15 million units of the cheaper model, for the first half of 2020, the Nikkei Asian Review reported. With that aggressive production plan now uncertain, Apple became the latest major tech company to lower its revenue forecast on Monday.

“The suppliers are doing their best to produce and ship the [cheaper] iPhone within four weeks. …The delay can’t be too long, otherwise it will affect the sales strategy of Apple’s new products in the second half of this year,” one of the people, who has direct knowledge of the matter, told Nikkei.

“On average, suppliers in the iPhone supply chain are currently operating at around 30% to 50% of capacity,” another source told Nikkei. “The constrained supply of iPhones will likely extend to April. There are still a lot of hurdles, from labor shortages to logistics transportation.”

“The biggest uncertainty is still lingering as no one can be sure whether the coronavirus is under control,” the person said. The source added, however, that most suppliers expect to have more employees back at work as soon as next Monday, after the 14-day quarantine period expires for those who returned from other provinces by Feb. 10. (more…)

Sources: Apple mobilizes suppliers to launch first 5G iPhone range

  
  Analysis
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 In a quest to reclaim its crown as the world’s most innovative tech company, Apple is mobilizing suppliers to produce its first ever 5G iPhones next year, with the three flagship models also set to include the most advanced mobile processors available and leading-edge screens, the Nikkei Asian Review has learned.

The upgraded iPhones, which Apple hopes will vault the company over Huawei’s current position as the second-biggest smartphone maker, will also likely accelerate global carriers to roll out 5G telecoms infrastructure — especially outside China, which has already invested heavily in the nascent technology.

Apple has been slow to embrace 5G; its iPhone 11 series this year only features 4G wireless technology. However Apple will push to reclaim its former glory as the maker of the world’s “must-have” smartphone with the major product line overhaul in 2020, sources told Nikkei. The iPhone, first launched in 2007, still accounts for around half of company revenues.

Apple plans to ship at least 80 million of the new 5G phones, one of the sources said. Rivals such as Samsung Electronics, the world’s largest smartphone supplier, China’s Huawei Technologies and second-tier competitors such as Oppo and Xiaomi, have already launched 5G phones.

“It will be the first time Apple introduces 5G iPhones … There will be three of them and the company has set an aggressive sales target,” one of the people familiar with the company’s thinking said.

Apple reports fourth quarter earnings after the U.S. stock market closes on Wednesday. (more…)

Apple increases production of iPhone 11: sources

  
  Analysis
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Apple has told suppliers to increase their production of its latest iPhone 11 range by up to 10%, or 8 million units, the Nikkei Asian Review has learned, following better-than-expected demand worldwide for its new cut-price handset.

The increase in orders appears to validate Apple CEO Tim Cook’s new strategy of enticing budget-conscious consumers with cheaper models amid the weakening world economy. The order boost of between 7 million and 8 million units is equivalent to total annual phone shipments this year by Google, a rising iPhone rival in Apple’s home U.S. market.

“This autumn is so far much busier than we expected,” one source with direct knowledge of the situation said. “Previously, Apple was quite conservative about placing orders,” which were less than for last year’s new iPhone. “After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,” the source said.

Shares of Apple component manufacturers rose in Japan after publication of the Nikkei report, outperforming the broader market. Japan’s Minebea Mitsumi closed up 3%, troubled iPhone screen maker Japan Display rose by almost 2%, while Murata Manufacturing and Alps Alpine also gained.

Apple launched its three new iPhone models — the iPhone 11, 11 Pro, and 11 Pro Max — in early September, and for the first time in its history reduced the starting price of the model upgrade, despite better cameras, to $699, compared to $749 for last year’s iPhone XR. (more…)

An IBM Hard Drive Being Loaded Onto An Airplane In 1956

  
Education, Life
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IBM-HARD DISK
 

This is a picture of an IBM hard drive being loaded onto an airplane in 1956. According to @HistoricalPics, which tweeted the picture, it’s a 5 mega-byte drive, and it weighed more than 2,000 pounds. 

To put that in context, 55 years later, the weakest iPhone 5S has a 16 gigabyte drive, about 3,200-times as big. And it weighs a quarter of a pound. The IBM hard drive could have stored exactly one iPhone picture, and nothing more.

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