The iOS 13.1 Beta and a Possible Link to Trump Tariffs

· · Link

Charles Arthur believes that the reason we’re seeing iOS 13.1 betas already could be linked to Trump’s tariffs.

Apple’s management also knows it can just about find a win-win solution here. If 13.1 proceeds as if it were 13.0, then it will be ready roughly when the “normal” 13.0 would have been, roughly a week after the new iPhones are launched, but about a week before they go on sale. That means that it can be the “GM” when it’s announced.

I don’t buy his Occam’s Razor logic because that is about finding an explanation with the fewest assumptions, and not his stated “most rational explanation.” And his theory, although interesting nonetheless, makes more assumptions than the current explanation of “Apple is holding features for iOS 13.1 to make iOS 13.0 more stable.”

Vietnam Might Be the Next iPhone Manufacturing Center

· · Link

Due to the trade war between the United States and China, companies are looking to put their eggs into more baskets. Vietnam could be one of them.

Apple has homed in on Vietnam and India as it intensifies its search for ways to diversify its supply chain. Nintendo has accelerated a shift in the production of its Switch console to Vietnam from China, according to Panjiva, a supply chain research firm. The Taiwanese electronics behemoth Foxconn, a major assembler of iPhones, said in January that it had acquired land-use rights in Vietnam and had pumped $200 million into an Indian subsidiary. Other Taiwanese and Chinese partners to Apple have indicated that they are considering ramping up operations in Vietnam as well.

Trump Tweets Mac Pro Tariff Exemption Won't Happen

· · Link

Apple had asked the White House for a Mac Pro tariff exemption, but President Trump tweeted today that it won’t happen.

Trump has said that exemptions are available only to companies that can demonstrate they had no other manufacturing option or show the tariffs would cause “severe economic harm.” In his Friday tweet, he again championed products made in the United States.

The tariffs are 25% on certain parts, which means that customers might be footing the bill.

iPhone and the US-China Trade War

· · Link

Jason Dedrick, Greg Linden, and Kenneth L. Kraemer broke down the cost of the iPhone and showed how China doesn’t get as much value from iPhone exports as we think.

So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the factory-cost estimate of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6% of the total. That includes a battery supplied by a Chinese company and the labor used for assembly.