China

Misleading talk about iPhone demand in China costs Apple $490 million

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Misleading talk about iPhone demand in China costs Apple $490 million
Tim Cook didn't give investors the truth about iPhone demand in China in 2018 and it's costing the company.
Photo: Ed Hardy/Cult of Mac

Apple reportedly settled a class-action lawsuit that accused the company of hiding news of declining iPhone demand in China. It concerns comments made by CEO Tim Cook during an investor call back in 2018.

The iPhone-maker allegedly will pay out a $490 million settlement, according to a preliminary settlement filed Friday with the U.S. District Court in Oakland, California.

Still big in Japan, iPhone slips in China

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iPhone 15 Pro in iPhone market outlook
Tuesday's iiPhone market outlook reports fell short of upbeat.
Photo: Apple

A flurry of iPhone market outlook reports shows Apple’s juggernaut handset is still the top-seller in Japan while slipping to fourth place in China so far in 2024. And that comes as Apple lowers component shipment targets for the year amid supply chain challenges, pointing to a possibly down year.

Hot rental market for unreleased Vision Pro springs up in China

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Vision Pro on table
Huge numbers of Chinese appear eager to try out Vision Pro -- not yet released there -- and they'll pay to do it.
Photo: Leander Kahney/Cult of Mac

Apple hasn’t released Vision Pro in China yet, but that hasn’t stopped scads of merchants from offering the headset for rent to enthusiasts. Many of them appear to think the AR headset may go beyond typical gaming uses, a new report says. Vision Pro rentals in China have attracted tens of thousands of customers.

Some eager testers think Apple’s pricey Vision Pro bests competitors like Meta’s Quest 3, as well.

iPhone up, China down: 7 nuggets from Apple’s earnings call

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Photo of an glass Apple Store with the words
Apple eked out a win thanks to strong iPhone sales last quarter. But not everything was rosy.
Photo: Karl Baron/Flickr CC/Modified by Cult of Mac

Apple’s holiday quarter financial results offer good news for investors. iPhone is doing great! And CEO Tim Cook talked about AI. But there’s rotten news coming out of China.

We pored over the results, and listened to the call Apple executives held Thursday with Wall Street analysts, so you don’t have to. Here’s the information you ought to know.

Today in Apple history: iPhone comes to the world’s biggest carrier

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china-defends-its-new-anti-encryption-law-image-cultofandroidcomwp-contentuploads201512Screen-Shot-2015-12-23-at-164347-png
China is a massive market for Apple.
Photo: Weibo/Tim Cook

December 22: Today in Apple history: iPhone comes to China Mobile, the world's biggest carrier December 22, 2013: After months of false starts, Apple finally secures a deal with China Mobile to bring the iPhone to the world’s largest telecom company.

With 760 million potential iPhone customers in the offing, the deal shapes up as Apple’s most important yet for growing its brand in China. In fact, Apple CEO Tim Cook says the country soon will become the company’s biggest market.

Congress wants to know why Apple TV+ axed Jon Stewart’s show

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The Problem with Jon Stewart
Did Apple's working relationship with China cause the cancellation of "The Problem with Jon Stewart"?
Photo: Apple TV+

Following last month’s abrupt cancellation of Apple TV+ commentary series The Problem With Jon Stewart, members of Congress sent a letter to Apple asking whether the show’s potential coverage of China played a role in the series getting the ax.

The lawmakers want to know if “the coercive tactics of a foreign power” were a factor in Apple’s decision.

Apple opens its 56th retail store in China

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This is Apple's first store in the city of Wenzhou.
This is Apple's first store in the city of Wenzhou.
Photo: Apple

Apple previewed its 56th retail location in China Thursday, saying Apple MixC Wenzhou will open to customers on Saturday as the company’s first in that city of more than 9 million people, and its fourth in Zhejiang province.

The iPhone giant also emphasized the new store’s accessibility and sustainable design incorporating plan-based materials.

Today in Apple history: iPhone goes on sale in China for first time

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iPhone 3GS
The iPhone 3GS arrives in China, without Wi-Fi.
Photo: Apple

October 30: Today in Apple history: iPhone goes on sale in China for first time October 30, 2009: Two years after launching in the United States, the iPhone finally goes on sale in China, giving Apple a chance to reach the world’s largest market.

A number of regulatory hurdles previously blocked Apple’s access to China, including restrictions on Wi-Fi functionality. With those problems solved, Apple offers the iPhone 3GS to the country’s 1.3 billion people, most of whom do not yet own smartphones.

iPhone 15 gets big discounts in China to boost sales

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iPhone 15 and 15 Plus review: Pro features for less
iPhone 15 is available with up to $200 off in China.
Photo: Ed Hardy/Cult of Mac

Apple’s latest iPhones are available with deep discounts of up to $200 in China. Many analysts believe Apple’s iPhone 15 series has been doing poorly in China.

The slowdown in sales has caused online Chinese e-commerce companies to offer hefty discounts on the new iPhones.

China investigates Apple’s iPhone-assembler Foxconn

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Foxconn building
Foxconn is Apple's biggest contract manufacturer.
Photo: Puddingworld, CC BY-SA 4.0/Wikimedia Commons

The Chinese government began multiple investigations into Foxconn, the Taiwanese company that assembles the iPhone, MacBooks and other Apple devices in China.

There are suspicions that the investigations are politically motivated: Foxconn founder Terry Gou is running for president of Taiwan.

Chinese government workers banned from using iPhones

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A new wave of lockdowns in China could put Apple millions of units behind on iPhone production.
No iPhone for you, China government workers!
Illustration: Cult of Mac

Apple has been caught in the middle of the high tech trade war between the United States and China. Many government employees have been ordered to not use an iPhone for work. Official government disapproval could result in lowered sales in the country, which currently contributes heavily to Apple revenue.

iPhone has not been singled out, though. The workers are not allowed to use any smartphone made outside of China.

Tim Cook touts ‘symbiotic’ relationship between Apple and China

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Tim Cook speaks with university students in Naples, Italy, after accepting an honorary Master's degree.
Apple CEO Tim Cook was a prominent attendee at the China Development Forum.
Photo: Federico II online canale 1

Apple CEO Tim Cook was one of the few executives from U.S. companies to attend the China Development Forum in Beijing over the weekend as tensions between the two countries continue.

In a speech, Cook spoke about the “symbiotic kind of relationship” that Apple and China have.

Apple warns of iPhone 14 Pro’s limited availability ahead of holiday season

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iPhone 14 Pro held in hand
Your iPhone 14 Pro order might not arrive until after Thanksgiving.
Photo: Leander Kahney/Cult of Mac

Planning on getting the iPhone 14 Pro or iPhone 14 Pro Max this holiday season? Getting your hands on one might be more difficult than you anticipate.

The latest COVID-19 curbs in China’s Zhengzhou have hampered the production of the latest Pro iPhones. Due to this, Apple now expects customers to wait longer to get their new iPhones.

Bad news for Xmas: Apple’s largest factory forced into ‘total lockdown’

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Foxconn building
Foxconn is Apple's biggest contract manufacturer.
Photo: Puddingworld, CC BY-SA 4.0/Wikimedia Commons

Days after reports of Foxconn employees hopping fences and fleeing from their jobs, a report late Wednesday from Taiwan News says Apple’s biggest iPhone factory is now on “total lockdown.” These new restrictions may have a big impact on Apple’s sales during the crucial holiday period.

Foxconn, whom Apple contracts to manufacture the lion’s share of iPhones, Macs and other Apple products, has had employees stay in on-site dormitories in a “closed-loop system” to prevent COVID outbreaks. Employees have been complaining about the “increasingly unsafe and inhumane working conditions” of the dorms.

Apple drops plan to use RAM from controversial Chinese company

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Apple drops plan to use RAM from controversial Chinese company
No RAM chips from YMTC will be used in iPhone 14.
Photo: Ed Hardy/Cult of Mac

Apple has reportedly given up its plan to use RAM chips made by Yangtze Memory Technologies Co. in the iPhone 14 series. It apparently ran into too much resistance from U.S. politicians, including suggestions the chips would somehow be used to surveil Americans.

To be clear, the chips would not have been used in iPhones sold outside of China.

No, Apple isn’t building Chinese spy chips into iPhone 14

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Republicans warn Apple not to use Chinese memory chips in iPhone 14
iPhone 14 will allegedly have RAM chips made by a controversial company.
Photo: Ed Hardy/Cult of Mac

Apple will reportedly use RAM chips made by Yangtze Memory Technologies Co. in the iPhone 14 series. This set off a firestorm of complaints from U.S. politicians, including suggestions the chips will somehow be used to surveil Americans.

YMTC is partially owned by the Chinese government and has ties to the Chinese military. There have been calls for it to be added to the U.S. Entity List of companies that face import restrictions.

Heatwave in China may hurt iPad supply

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Future iPhones might need a Vapor Chamber cooling system
It's hot and dry enough in China to affect iPad production.
Photo: Ed Hardy/Cult of Mac

It’s hot in China. Hot enough that the government is ordering industries in parts of the country to temporarily halt electrical consumption so there’s enough left for air conditioning. An Apple analyst warns that iPad assembly could be affected.

Apple is expected to launch a redesigned budget iPad and an updated iPad Pro this autumn, and production problems could limit their availability.

Apple will offer hefty discounts on iPhone 13, iPhone 12 and AirPods in China

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6.1-inch iPhone 13 review
Apple will discounts its selected products in China for a limited time.
Photo: Ed Hardy/Cult of Mac

In a rare move, Apple will run a four-day promotion in China and offer hefty discounts of up to RMB 600 ($90). The discount will be applicable for iPhone 13, iPhone 12, iPhone SE, Apple Watch SE and AirPods.

The promotion will run from July 29 through August 1.

Your next iPad could come from Vietnam

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iPad Air 5
COVID-19 lockdowns in China force Apple to diversify iPad production.
Photo: Apple

The lockdown in Shanghai and nearby regions, and China’s strict zero-COVID policy, have forced Apple to move some iPad production out of the country and to Vietnam for the first time.

The company already expects to take an $8 billion revenue hit in the ongoing quarter due to supply chain disruptions caused by the Chinese lockdowns.

iPhone 14 Max could be hard to get your hands on at launch

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iPhone 14 Pro concept in white
You could have to wait longer to get your on the iPhone 14 Max
Concept: Jon Prosser/Ian Zelbo

Haitong International Securities analyst Jeffy Pu has provided more insight into the iPhone 14’s production delay and revealed that the production of the 6.7-inch iPhone 14 Max has been the worse affected by the lockdown in China.

A supply chain report from earlier in the week claimed that iPhone 14’s production was running behind schedule.

Apple wants to make more iPhones and MacBooks outside China

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A new wave of lockdowns in China could put Apple millions of units behind on iPhone production.
Apple wants to expand its product manufacturing outside China
Illustration: Cult of Mac

Apple is reportedly looking to expand the production of its devices outside China due to its strict anti-Covid policy.

The Chinese government’s uncompromising zero-covid policy has affected the manufacturing of Apple devices, with shipping times slipping to July for some products.

Apple will start turning prototypes into products outside of China

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A folding iPhone might leave a portion of the screen always exposed.
Turning a design into a product doesn't have to happen in China.
Photo: Apple/Cult of Mac

Apple will increase the number of countries where it does an important phase in developing products, according to a industry analyst. Currently, its R&D-oriented New Product Introduction (NPI) sites are in China, but the company plans to build NPI offices in other places as well.

Recent COVID shutdowns — which have disrupted several recent products — are supposedly the reason for the change.

New China COVID-19 lockdowns could hit iPhone production hard

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A new wave of lockdowns in China could put Apple millions of units behind on iPhone production.
A new wave of lockdowns in China could put Apple millions of units behind on iPhone production.
Illustration: Cult of Mac

Analysts note that new COVID-19 lockdowns in China are hitting Apple’s supply chain hard. And the pain will likely worsen, with production falling behind by up to 10 million iPhones.

And this is not just about iPhones. Authorities have halted production at three key suppliers for iPhone, iPad and Mac assembly. Meanwhile, Apple is negotiating to reopen production lines, though success could be hard to come by, according to one analyst Friday.

This follows recent news of assembly and shipping delays on built-to-order MacBook Pro models.

Apple’s biggest iPhone maker closes major plant for another lockdown

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Apple's relationship with Foxconn on the rocks
Foxconn doesn't expect a "major" impact to production.
Photo: Apple

Foxconn, Apple’s largest manufacturing partner, was this weekend forced to close one its biggest plants due to a citywide lockdown. Another COVID-19 outbreak has put all of Shenzhen, China, out of action until March 20 at the earliest.

The city, home to 17.5 million people, houses the Longhua Science & Technology Park — sometimes dubbed “Foxconn City” — which features 15 factories, worker dormitories, grocery stores, restaurants, and more.