Earlier, Reuters reported that contract manufacturer Pegatron was in talks to sell its sole iPhone assembly plant in India to Tata Group, and discussions were in advanced stages. Regarding this matter, Pegatron told CNA reporters that this report was speculative and lacked evidence, declining to comment further.

According to a Reuters report on April 8, Pegatron was said to be considering selling its iPhone assembly plant located in Chennai, a major city in southern India, to Tata Group, India’s largest private enterprise. The negotiations were rumored to conclude within six months. If an agreement is reached, the two parties will establish a joint venture, with Tata Group holding a 65% stake to operate the plant, while Pegatron will retain a 35% stake and provide technical support.

Sources cited by Reuters also mentioned that Pegatron is building another iPhone assembly plant in the Chennai area, and discussions with Tata include acquiring control of this new facility. The negotiations between Tata and Pegatron are expected to conclude within six months, after which all Pegatron India plant employees will transition to the joint venture.

Amid rising geopolitical risks, tech giants are diversifying production away from China. Pegatron reduced its stake in its Kunshan plant to 37.5% in December, with Chinese Luxshare now leading. However, Pegatron emphasizes it won’t withdraw from China and plans to establish new facilities this year.

In recent years, Pegatron has been consistently expanding its global footprint, with expansions ongoing in Taiwan, Mexico, Indonesia, India, Vietnam, and other locations.

Currently, approximately 10% of Apple’s iPhone production capacity in India comes from Pegatron, with the vast majority of capacity originating from Foxconn’s iPhone assembly plant located in Karnataka.

Furthermore, Foxconn has the highest share in Apple’s current new iPhone assembly. Among the four iPhone 15 series models, only certain models like iPhone15 and iPhone15 plus are produced by Tata Group in India.

In January, Pegatron announced a USD 12 million investment to form a Malaysian subsidiary for consumer electronics. It’s also expanding its Mexican plant capacity, investing USD 75 million to boost its electric vehicle business.

(Photo credit: Apple)

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Currently, the global foldable phone market is dominated by non-Apple players, with Samsung and Huawei acting as the key players, continuously expanding their related product lines. Although Apple has yet to debut any foldable hardware, rumors cited by a report from Economic Daily News suggest they are actively working to catch up by accelerating product development.

Sources cited by the same report suggest that Apple is highly likely to launch its first foldable hardware product either this year or next year, potentially signaling a shift to a three-way competition in the foldable phone market.

Currently, Samsung and Huawei collectively hold over 80% of the global foldable phone market share, making them highly influential in the market. Industry sources cited by the report believe that with Apple entering the foldable phone market, a reshuffle is inevitable, offering consumers not only more product choices but also potentially lower prices compared to the current landscape.

It is reported that in the past, most foldable phones were priced starting at USD 1,000, with some flagship models even priced at USD 1,500. With Samsung and Huawei potentially introducing more affordable foldable phones this year, it is expected that foldable phones priced below USD 1,000 will become increasingly common in the future.

Industry sources cited by the same report point out that the battleground for mobile phone brands will still be in flagship models, as the specifications and features of flagship phones determine the technological prowess of the brand. Therefore, whether it’s Samsung, Huawei, or even Apple, they will all compete vigorously in this market.

The market for budget-friendly phones is currently not well-defined and is primarily in the early stages of development, focused on testing the waters. It is estimated that it will take another two to three years for this market segment to become more stable.

Same sources cited by the report suggest that with Samsung and Huawei continuously investing in the foldable phone market, Apple is pressured to launch a foldable phone to keep up and not fall behind. However, the biggest challenge lies in how Apple can launch a foldable phone later but still seize the initiative, potentially attracting loyal Apple fans without affecting the sales of existing iPhone models.

According to the analysis released by TrendForce in the second half of last year, Apple’s development in the folding field still requires time. Apple’s foray into foldables has been tepid, to say the least.

Yet, Apple’s unwavering obsession with user experience could be the culprit. Furthermore, persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back.

But here’s the kicker: Achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. Could this mean Apple might leapfrog right into medium-sized foldable products—like laptops or tablets? Only time will tell.

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(Photo credit: Apple)

UMC has reportedly received a contract to manufacture crucial chips for Apple’s upcoming iPhone antenna modules. According to a report from Economic Daily News, the production volume is said to be in the tens of thousands.

Regarding this, UMC does not respond to specific customer and market rumors. It is reported that the orders from UMC this time come from Qorvo, a supplier for Apple’s power amplifier (PA).

Qorvo designs new iPhone antenna components for Apple, integrating new chips and supplying them with Qorvo power amplifiers. These new chips adopt UMC’s 3DIC technology and are manufactured by UMC.

Per the report citing industry sources, it has revealed that the chips Qorvo outsourced UMC this time are products of Anokiwave, a wireless communication chip factory that Qorvo recently merged with early this year. They will be integrated into the design of new iPhone antenna modules and are currently gradually increasing in volume.

As smartphones gradually integrate AI functionality, the sources cited in the same report also reveal that Apple is enhancing efficiency by adopting a new design for the next generation iPhone antenna module. They are incorporating products from Anokiwave, which was acquired by Qorvo earlier this year, to enhance iPhone reception capabilities.

With Qorvo leveraging Anokiwave’s products and partnering with UMC for manufacturing, UMC secures critical component chip orders for the iPhone once again. Previously, UMC also manufactured driver IC chips for Apple through NovaTek.

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In the Chinese market, demand for Apple’s iPhone continues to falter, with Bloomberg reporting a significant 33% drop in iPhone shipments in February compared to the same month last year. As per Bloomberg’s report on March 26th, despite China remains Apple’s most crucial overseas market, iPhone demand in China has remained consistently low.

According to official data cited in the report, iPhone shipments in the Chinese market have plummeted by 33% in February compared to the same period last year, marking the second consecutive month of decline. Influenced by the later timing of the Lunar New Year compared to 2023, overseas smartphone shipments in February were said to be only around 2.4 million units, with iPhones accounting for a significant portion.

Apple is reportedly the only overseas manufacturer with a substantial market share in China. Data from the China Academy of Information and Communications Technology (CAICT) shows that iPhone shipments in January were approximately 5.5 million units, marking a significant 39% decline compared to the same month last year.

Still, a report from The Wall Street Journal on March 22 has highlighted that intensified competition with Chinese manufacturers like Huawei has led to tough sales competition for Apple’s iPhone in China.

Thus, the same report from Wall Street Journal indicated that Apple is in talks with Baidu to potentially integrate Baidu’s generative AI services into its own products, including iPhones, for the Chinese market. While the agreement is still in its early stages, incorporating a Chinese version of AI could potentially give Apple a competitive edge in the Chinese market.

Apple is reportedly intensifying its AI efforts, with plans to collaborate with Baidu on the Chinese version of its iPhone 16 series this year, as per a report from Economic Daily News. The devices will feature Baidu’s developed Generative AI technology, thus sparking a new wave of AI server deployment by Baidu.

In China, due to official requirements, providing generative AI services to ordinary consumers requires prior approval and scrutiny from relevant authorities. Only Chinese companies like Baidu and Alibaba have been granted permission. Apple has chosen Baidu as its AI service partner in the Chinese market.

According to the aforementioned reports, Apple and Baidu have entered into negotiations, planning to integrate Baidu’s generative AI services into products such as the iPhone for sale in China. By incorporating a Chinese version of AI, Apple aims to enhance its competitive advantage in the Chinese market.

Inventec, a Taiwanese manufacturer, has had close collaboration with Baidu for 13 years in the field of customized server manufacturing, has jointly developed an AI computing platform. Serving as a key server manufacturing partner for Baidu’s “All in AI” strategy, Inventec plays a major role in Apple’s swift push into the Chinese AI market alongside Baidu.

Inventec has traditionally refrained from commenting on order dynamics and customer relationships, emphasizing instead the robust shipment momentum of AI servers this year. Shipments are expected to more than double compared to last year. With AI server revenue accounting for approximately 5% to 6% last year, it is projected to surpass 10% this year.

Sources cited by the same report from Economic Daily News are optimistic that with Baidu becoming a key partner for Apple in the China’s generative AI landscape, Inventec’s AI server shipment momentum is poised to amplify, benefiting from the opportunities brought by the collaboration between Apple and Baidu.

As per a previous report from TrendForce, Baidu’s foray into AI chips can be traced back to as early as 2011. After seven years of development, Baidu officially unveiled its self-developed AI chip, Kunlun 1, in 2018. Built on a 14nm process and utilizing the self-developed XPU architecture, Kunlun 1 entered mass production in 2020. It is primarily employed in Baidu’s search engine and Xiaodu businesses.

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(Photo credit: Apple)