Foxconn Expected to Assemble Bulk of 2018 iPhones

Contract electronics manufacturer Wistron Corp (緯創) has not been chosen to assemble the trio of new iPhones set to be launched later this year, Fubon Securities Co’s (富邦證券) survey of Apple Inc’s supply chain showed.

Following setbacks in production yield rates in March, the US technology giant has ruled out Wistron and tapped Hon Hai Precision Industry Co (鴻海精密) and Pegatron Corp (和碩) to assemble the new models, the Chinese-language Apple Daily quoted Fubon Securities analyst Arthur Liao (廖顯毅) as saying.

Hon Hai has been selected to assemble the bulk of the new iPhones, including all of the premium 5.8-inch OLED model and 90 percent of the 6.5-inch OLED phones, as well as 75 percent of the 6.1-inch LCD model, with the remainder given to Pegatron, the report said.

The lower-priced LCD model is to be pivotal in determining market reception for Apple’s smartphone lineup, Liao said, adding that a total of about 83 million units are to be ordered.

While the US$999 starting price tag for last year’s iPhone X drew criticism, Liao said that the 6.1-inch LCD model would be priced at about US$799, lower than the NT$28,900 price for the 5.5-inch iPhone 8 Plus listed on Apple’s Web site.

The budget 6.1-inch model would have nearly all of the same materials as the iPhone 8 Plus, and would cost about US$275, Liao said.

While a 3D sensing module and a bigger display would add US$20 and US$5 to the production cost of the LCD model respectively, its main rear camera would be US$15 cheaper than that of the iPhone 8 Plus, Liao said.

In addition, the new model’s LCD display would not include pressure-sensitivity features, saving US$10 and canceling out the difference in cost, he said.

Meanwhile, local media have reported that Wistron has begun mass production of Apple’s older iPhone 6 series at one of its production plants in India to meet domestic demand there.

Source : http://www.taipeitimes.com/News/biz/archives/2018/07/05/2003696084