Internal Report: Unrest in China’s “iPhone City” will cause 6 million lost iPhones

Apple Could Lose Six Million iPhones
Taipei Times
Tuesday, November 29, 2022, page 12

FACTORY TUMULT: Departure of new workers will negatively affect production much less than official governmental quarantines imposed on existing employees, said a worker at China’s ‘iPhone city.’

Turmoil at Apple Inc’s key manufacturing hub in Zhengzhou is likely to result in a production shortfall of almost 6 million iPhone Pro units this year, said a person familiar with assembly operations.

iPhone 14 Pro Max

The situation at the plant remains fluid and an estimate of lost production could change, said a person who requested anonymity to discuss private information.

Much depends on how quickly Hon Hai Precision Industry Co (鴻海精密), the Taiwanese company that operates the facility, can get people back to assembly lines after violent protests against COVID-19 restrictions. If lockdowns continue in the weeks ahead, production could be further reduced.

The Zhengzhou campus has been wracked by lockdowns and worker unrest for weeks after COVID-19 infections left Hon Hai, also known as Foxconn Technology Group (富士康科技集團), and the local government struggling to contain the outbreak.

Thousands of staff fled last month after

iPhone 14, Domestic Manufacture, Free Trade, International Diplomacy & National Security

Apple charges between US$799 for a basic iPhone 14, to US$1599 for a top-of-the-line iPhone 14 Pro Max model.

That’s how much you’ll pay without carrier subsidies, which are typically tied to a service contract, but…

How much does Apple pay for it?

How much does it cost them to make it?

Japanese business newspaper Nihon Keizai Shimbun, and Fomalhaut Techno Solutions, a Tokyo-based mobile communications equipment analysis firm, collaborated to investigate and issued a report of their findings which were based upon disassembly of three models of the iPhone 14 series, and an estimated cost analysis of the hardware components.

Nihon Keizai Shimbun (Nihon sometimes also spelled Nippon), translated as “Japanese Economic Newspaper,” is Japan’s most widely respected daily business-oriented newspaper, with a total morning and evening circulation of 3.7 million.

iPhone 14 Pro Max

The report found that the total parts cost of Apple’s iPhone 14 Pro Max, their top-of-the-line model, costs about 20% more than last year’s iPhone 13. The iPhone 14 Pro series has few new features, and is powered by Apple’s A16 processor, which continues the company’s strategy of producing ultra-high performance products, yet prices in the US and elsewhere remain the same, thus ostensibly constricting, or compressing, profitability.

Since its 2018 introduction, iPhone’s flagship “Max” model has cost an extra US$400 to US$450.

Based upon their analysis, Fomalhaut estimated that the total parts price for the iPhone 14 Pro Max is approximately US$501, which is slightly US$60 more than last year’s iPhone 13 Pro Max model.

The cost increase in the iPhone 14 Pro series is primarily because of Apple’s “A16 Bionic” chip, which uses a state-of-the-art 4nm (nanometer) production process, currently only available from Taiwan Semiconductor Manufacturing Company Limited (TSMC), and Samsung Electronics.

Moves Protect Intellectual Property

Headquartered in Taiwan, TSMC is the world’s largest contract chip maker, a major Apple supplier, and is constructing a US$12 billion plant in Arizona near Phoenix. Governor Doug Ducey had initially visited Taiwan in 2017, and again in August 2020 for a 3-day trip, at which time TSMC announced their intention to build a $12B chip foundry in Arizona that year, and shortly thereafter began seeking subsidies. At the time of the announcement, TSMC speculated that construction would begin in 2024.

However, in August 2022, Governor Ducey made a brief construction progress report about TSMC’s Arizona facility, and recollecting his previously visits, stated in part that, “Just over two years later TSMC has completed construction for its main facility and continues to make excellent progress. Along with TSMC’s historic investment, roughly two dozen Taiwanese-based suppliers are finding Arizona is right for investment.”

TSMC broke ground on the project March 2021 and had a ceremonial “topping” celebration, a construction industry term meaning installation of the last beam, with 4000 attendees in July 2022. The property literally went from 1100 acres of tumbleweeds to factory shells in under six months.

But not only is the construction of TSMC’s Arizona facility a win-win for the United States, it also represents a prospective national security matter, because there have been rumblings that the Communist Chinese government could seize the Taiwanese facility.

Speaking in May 2022 at the Chongyang Institute for Financial Studies at Renmin University of China in Beijing, Chen Wenling, Chief Economist at the Communist Chinese government-run China Center for International Economic Exchanges told attendees that, “If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan.”

Her remarks were alarming, and appeared to encourage Chinese military assault, and she warned the attendees that

POTUS BIDEN IDs GOP Hypocrisy & Globalization Failure

Neoliberalism’s Globalization scheme has failed… SPECTACULARLY.

And all it took was 50 years, a global pandemic, the practical decimation via “outsourcing” of the majority of the American domestic economy, an increase in homelessness, deaths of all kinds from all sources, addictions, crime, disease, mass incarceration, increase in preventable deaths from lack of healthcare, all-time high wealth dispartity, increase in poverty rates, tax cuts upon the wealthiest Americans and their corporations, after GOP POTUS Richard Nixon kissed Communist China’s Chairman Mao’s derriere through cozying up to Mao’s successor/henchman Chinese Communist Chairman Chou En-lai.

What is “neoliberalism”?

Well, one thing it’s NOT, is pro-American.

The sequence of events that led to ‘Brexit’ — a moniker referring to the British exit from the European Union — began as part of a neoliberal campaign to deregulate many previously-regulated industries, and create a ‘free market uptopia’ in the UK. They failed at every turn.

The other thing that IT IS, is a primarily a GOP-wielded tool… though, in all fairness, there have been some Democrats (like Bill Clinton) who enthusiastically supported it, along with the so-called “Three Strikes” laws which is a two-part scheme, consisting of a:

1.) School-to-prison pipeline, which then becomes a;
2.) Prison-packing scheme

— which has continuously disproportionately harmed our non-White brothers & sisters, primarily, and in that process turned America into a police state. In the United States, there are MORE TOTAL PEOPLE INCARCERATED than in all the prisons combined in Iran, Iraq, Afghanistan, Russia, North Korea, China, and other despotically-ruled totalitarian regimes worldwide.

Applying a “Free Market” ideology to that scenario would dictate that capacities of the prisons should not be enlarged (in order to minimize operating costs), and instead, build Wall-$treet-traded PRIVATE FOR-PROFIT PRISONS — which is a very “pro-free market” thing to do, which again, is part and parcel of neoliberal behavior, strategies, and tactics.

Yeah.

But “neoliberalism” is a hard-line “modern spin” on some old ideas, at least as interpreted by an entire cadre of moderns (most of whom are in the current era).

The Stanford Encyclopedia of Philosophy writes this about Neoliberalism, stating that neoliberalism is a:

“philosophical view that a society’s political and economic institutions should be robustly liberal and capitalist, but supplemented by a constitutionally limited democracy and a modest welfare state.”

Typically, individuals who subscribe to, and promote, such ideas often do so blindly, and unthinkingly.

Again, most — but, not all — whom have espoused, or supported neoliberal ideas have been (and are) GOPers and Radicalized Republicans.

Recall that it was Ronald Reagan who, in his first Inaugural Address January 20, 1981, stated that “In this present crisis, government is not the solution to our problem; government is the problem.“

The preposterous absurdity of that statement is self-evident, because if government is the problem, then the obvious solution to that problem is elimination of it (government); and the absence of government is a state of anarchy, chaos, and lawlessness. Yet, it was at that point in which radicalized Republicans who identified themselves as the “TEA Party” caucus (Taxed Enough Already), began in earnest to slowly dismantle government, bit-by-bit, piece-by-piece, and law-by-law.

POTUS Clinton was also largely sycophantic to the GOP’s destructive objective under the direction of GOP Speaker of the House Newt Gingrich, when he proudly proclaimed in his January 23, 1996 State of the Union Address, that “The era of big government is over.” Yet, his go-along-to-get-along strategy proved inadequate when faced with the reality of the failures of Three-Strikes laws, creation of a school-to-prison pipeline as a private-prison-for-profit packing strategy, which incarcerated more non-Whites than Whites, especially through disparate sentencing for crack vs powder cocaine, and cannabis.

Investopedia lists these characteristics of the ideals, principles, and practices often found in neoliberal governments which often

David Perdue wrote a letter asking the POTUS to import cheap foreign labor.

If you want to know what a person will do, simply look at their past.

That’s a generally good rule to observe, and that principle is found in practically every activity of human life – even in politics.

So, let’s examine Georgia’s Banana Republican Senator David Perdue, who was formerly Dollar General CEO from 2003 to 2007 of the Goodlettsville, TN-based business.

David Perdue has been selling out Americans for a long time. As long as it made a fast buck for him, or whoever hired him, he was okay with that.

A little-known fact about Perdue – but one well worth remembering, and publicizing – who is campaigning against Democratic challenger Jon Ossoff (from whom he also hides and refuses to debate), is that when Perdue was Dollar General’s CEO, he was significantly responsible for driving manufacture of most of the company’s merchandise out of America, to Chinese factories. In a 2004 conference call with investors, he said in part that, “We have opened a sourcing office in Hong Kong, and I can tell you we have had a dramatic impact on our business by having direct contact with our manufacturers.”

Of course, Perdue

Federal Reserve Study: Trump Tariffs Hurt Economy & Employees

It’s official!

In their research work “Disentangling the Effects of the 2018-2019 Tariffs on a Globally Connected U.S. Manufacturing Sector,” Aaron Flaaen, a Senior Economist, and Justin Pierce, a Principal Economist at the Board of Governors of the Federal Reserve System, make their findings that Trump’s Tax Increase – aka “tariffs” – have actually harmed the Economy, and Employment.

“Since the beginning of 2018,
the United States has undertaken unprecedented tariff increases,
with one goal of these actions being
to boost the manufacturing sector.
In this paper, we estimate the effect of the tariffs
—including retaliatory tariffs by U.S.trading partners—
on manufacturing employment, output, and producer prices.”

“Higher tariffs are also associated with relative increases in producer prices via rising input costs.”
– Abstract; p.1

“We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices.”
– Section 1; p.3

“Since the end of 2018, however, manufacturing output has declined noticeably and manufacturing employment growth has stalled.”
– Section 2.1; p.5

A Guide To Increasing Company Value

Almost everyone who has worked in sales has heard the mantras “the customer is always right,” and “the customer is your most important person.”

And as anyone who has worked in healthcare can attest, neither of those statements are true.

For example, consider the patient who, arriving at the ED (Emergency Department) said to the physician, “My doc says my sugar is high so he gave me this medicine for diabetes.”

Naturally, the physician asked, “Do you take it?”

The patient replied saying, “No, ’cause I don’t have diabetes, just high sugar.”

And then, another Physician who explained to the patient’s mother her child’s diagnosis and therapeutic interventions saying, “She has a concussion, she needs to rest in bed in a quiet dark room until she is better.”

The mother then asked, “Can she go to the fair?”

Conventional wisdom often monikered as “common sense,” sometimes follows the pithy axiom that “common sense isn’t so common anymore.”

For years, I’ve maintained that the customer is NOT “always right,” nor are they the “most important person” in any business.

Instead, the most important person in any business are the employees.

Some CEOs have gotten a bad rap, often justifiably, because while seeking to return corporate profit and shareholder return, they’ve cut resources and employees. Like the abusive Pharaoh of the Exodus account in the Old Testament, they demand to “make more bricks with less hay.” Of course, we know how that story ended – not well.

So naturally, it delighted me to read some time ago that Sir Richard Branson, a renown entrepreneur and philanthropist, has similarly long held that thought and said,

Why does America need a Single Payer Healthcare option?

America and American industry, its entrepreneurship and ingenuity, needs a Single Payer Healthcare option for the same reason America’s military service members -and- their families have 100% all-expenses paid healthcare.

Why is that?

Because a sick military service member can neither train, nor fight, nor perform their mission (work/do their job), neither can they work/train if they’re worrying about their family – who’ll care for them, how they’ll get well, if they can pay for the care/treatment, etc.

Furthermore, it’s also a matter of National Security to provide 100% of all healthcare services at no cost to them because if they’re wondering how they’ll pay for healthcare, they might think of looking elsewhere for money, and thereby could become tempted to compromise security by divulging secrets, or working for an enemy.

Already, America is NOT the “healthiest” nation in the world, neither do we have the best healthcare nor healthcare system in the world. In fact, the overall performance or level of Americans’ national level of health, according to the latest research published in

Who Pays Unskilled Labor US $80,000/year?!

“For Scripture says, “Do not muzzle an ox while it is treading out the grain,” and “The worker deserves his wages.”“
-1Tim5:18

Lately, much has been made of raising the Minimum Wage, which does nothing more than establish a minimum standard.

But who cares about minimums?

We should strive to exceed!

Some well-known, publicly-traded, highly profitable firms, however, revel in greed, and wallow in the slop, when they can do far better for the employees who operate their businesses.

The question is often asked “why pay unskilled workers $10 or even more per hour?”

It’s a valid question, and deserves a genuinely thoughtful response.

So, let’s pose that question to BIG OIL COMPANIES in Williston, North Dakota, where…

“oilfield companies pay unskilled 19 year-olds $80,000 a year.”

 

http://www.marketplace.org/topics/economy/mall-middle-what-used-be-nowhere

by Dan Weissmann
Monday, June 16, 2014 – 15:21

Williston, North Dakota, has the nation’s highest rents. Thanks to the fracking boom, a basic apartment in Williston costs more than something similar in New York or San Francisco. And it comes with a lot fewer amenities.

For instance, shopping. If Walmart doesn’t have it, the nearest outlet is at least two hours away. Now, a Swiss investment firm has announced plans to

Remarks by President Barack Obama at Chattanooga, Tennessee’s Amazon Distribution Center on Jobs for the Middle Class, 07/30/13

The White House

Office of the Press Secretary

For Immediate Release

July 30, 2013

Remarks by the President on Jobs for the Middle Class, 07/30/13

Amazon Chattanooga Fulfillment Center
Chattanooga, Tennessee

2:00 P.M. EDT

THE PRESIDENT:  Hello, Chattanooga!  (Applause.)  It is good to be back in Tennessee.  (Applause.)  It’s great to be here at Amazon.  (Applause.)

I want to thank Lydia for the introduction and sharing her story.  Give Lydia a big round of applause.  (Applause.)  So this is something here.  I just finished getting a tour of just one little corner of this massive facility — size of 28 football fields.  Last year, during the busiest day of the Christmas rush, customers around the world ordered more than 300 items from Amazon every second, and a lot of those traveled through this building.  So this is kind of like the North Pole of the south right here.  (Applause.)  Got a bunch of good-looking elves here.

Before we start, I want to recognize your general manager, Mike Thomas.  (Applause.)  My tour guide and your vice president, Dave Clark.  (Applause.)  You’ve got the Mayor of Chattanooga, Andy Berke.  (Applause.)  And you’ve got one of the finest gentlemen I know, your Congressman, Jim Cooper.  (Applause.)  So thank you all for being here.

So I’ve come here today to talk a little more about something I was discussing last week, and that’s what we need to do as a country to secure a better bargain for the middle class -– a national strategy to make sure that every single person who’s willing to work hard in this country has a chance to succeed in the 21st century economy.  (Applause.)

Now, you heard from Lydia, so you know — because many of you went through it — over the past four and a half years, we’ve been fighting our way back from the worst recession since the Great Depression, and it cost millions of Americans their jobs and their homes and their savings.  And part of what it did is it laid bare the long-term erosion that’s been happening when it comes to middle-class security.

But because the American people are resilient, we bounced back.  Together, we’ve righted the ship.  We took on a broken health care system.  We invested in new American technologies to reverse our addiction to foreign oil.  Changed a tax code that had become tilted too much in favor of the wealthy at the expense of working families.  Saved the auto industry, and thanks to GM and the UAW working together, we’re bringing jobs back here to America, including 1,800 autoworkers in Spring Hill.  (Applause.)  1,800 workers in Spring Hill are on the job today where a plant was once closed.

Today, our businesses have created 7.2 million new jobs over the last 40 months.  This year, we’re off to our best private-sector jobs growth since 1999.  We now sell more products made in America to the rest of the world than ever before.  (Applause.)  We produce more renewable energy than ever.  We produce more natural gas than anybody else in the world.  (Applause.)  Health care costs are growing at the slowest rate in 50 years.  Our deficits are falling at the fastest rate in 60 years.  (Applause.)

So thanks to hardworking folks like you, thanks to the grit and resilience of the American people, we’ve been able to clear away some of the rubble from the financial crisis.  We’ve started to lay a new foundation for a stronger, more durable America — the kind of economic growth that’s broad-based, the foundation required to make this century another American century.

But as I said last week, and as any middle-class family will tell you, we’re not there yet.  Even before the financial crisis hit, we were going through a decade where a few at the top were doing better and better, but most families were working harder and harder just to get by.  And reversing that trend should be Washington’s highest priority.  (Applause.)  It’s my highest priority.

But so far, for most of this year, we’ve seen

President Barack Obama to visit Chattanooga, Tuesday, July 30, 2013

Chattanooga is an old, old, old, old city.

It’s older than Civil War old.

Throughout the city there are narrow streets, many (if not most) of which need widening and repaving. Interstate 24, which leads into the city, is in sore need of widening. Because of the twisting, winding route it takes as it leads into, through and around the city and it’s numerous mountains and hills, it can be treacherous. When any slowdown for any reason occurs, traffic can be backed up for 15-20 miles, or more. When wrecks occur on that route, they’re often fatal, and create even longer delays. The only other major route into the city is US Highway 72. There is no bypass. If there are problems on either of those two routes, significant delays can take hours. (See a Google Map of the area.)

It has a university – University of Tennessee, Chattanooga – with other smaller colleges & universities nearby (Lee University, in Cleveland & Southern Adventist University, in Collegedale). One of three hospitals in the area (each which has numerous campuses) Erlanger, is a Level One Trauma Center, and teaching hospital for the College of Medicine at the University of Tennessee, Knoxville. Memorial Hospital, is part of the Catholic Health Initiatives system, and is a teaching hospital, while Parkridge Hospital is operated by TriStar Health.

Because of industrial waste released by area manufacturing, in 1969, Chattanooga had the filthiest air in the nation. The Tennessee River which serves as a boundary for the area was equally polluted. For many years, troubles GALORE plagued the city, including economic inequality, poor race relations, deteriorating economic infrastructure, rapid population decline, and departure of industry.

Recognizing that the city and area residents were suffering a slow suicide, officials and interested citizens embarked upon a plan to revitalize the area, including cleaning up industrial waste, reinvigorating the economy with employment opportunity, and looking forward, rather than backward.

EPB (Electric Power Board), one of the public utilities in the area, came upon an idea to infuse their power grid with Fiber Optic cable to enable better response times, to pinpoint areas of concern, and to re-route electricity during power outages when lines were downed by trees or severe weather. They faced stiff opposition in the form of legal fights by Comcast (principally), yet were successful in overcoming. In turn, they sold High Speed fiber optic Internet Connectivity to area residents at a significantly reduced cost in comparison to the Wall-Street-traded Comcast. They also provide better service.

While the area’s renaissance is by no means complete, it has advanced with enormously significant strides.

—
 

Obama to visit uneven Chattanooga area recovery

published Saturday, July 27th, 2013

Mike Pare, Deputy Business Editor, Chattanooga Times Free Press; MPare@ TimesFreePress.com phone: (423) 757-6318

by Mike Pare
view bio

When President Barack Obama flies into Chattanooga on Tuesday to tout new economic initiatives, he’ll see a city recognized in a national study as a metro area emerging from the recession as an “economic frontrunner.”

Area Development, a national business magazine covering site selection and relocation, ranked metro Chattanooga at No. 86 — in the top quarter — among 380 metro areas examined for the study titled “Leading Locations for 2013.”

While in Chattanooga Obama is expected to unveil new ways to spur the nation’s sluggish economic recovery.

At the Amazon distribution center at Enterprise South industrial park, the president will see a growing, state-of-the-art distribution facility with 1,800 full-time jobs created since 2011. The Chattanooga facility, along with

Federal Reserve’s “Beige Book” shows improving economy

The Federal Reserve regularly publishes a summary of economic activity in the 12 Federal Reserve Districts in the United States.

It is important to note that “This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.”

Much, if not most of the news was promising.

Summary highlights from this Beige Book 2013-01-16 are that:

• “Reports from the twelve Federal Reserve Districts indicated that economic activity has expanded since the previous Beige Book report, with all twelve Districts characterizing the pace of growth as either modest or moderate.”

• “All twelve districts reported some growth in

America’s Emerging Economic Expansion will be fueled by Natural Gas

American ingenuity and enterprise will again place us at the forefront, and it will be very soon.

Our economy is on the upswing, and this is going to be a significant part of that big boom.

I predict it will be of longer duration, and of significantly greater strength than our economically prosperous period under the Clinton administration.

And THAT is a good thing.

—

States Ask Detroit: ‘Build Us A Natural Gas Car, Please’

by Tracy Samilton

Listen to the Story; Morning Edition [3 min 28 sec] Download

August 3, 2012
More than 20 state governors are taking an unusual step to boost the natural gas vehicle industry. Independent of the federal government, they’re asking Detroit carmakers to build them a new kind of car: a midsize sedan that runs on compressed natural gas instead of gasoline.

Honda’s CNG Civic is the only natural gas-fueled sedan currently available in the United States. With so few CNG passenger cars on the road, pumping stations are few and far between. Tracy Samilton for NPR

The governors are hoping to boost demand for natural gas cars with their collective buying power. Combined, the states say they could ultimately buy thousands of CNG vehicles to replace their current vehicle fleets — if those cars were available.

Only a few kinds of vehicles currently run on compressed natural gas in the U.S., and only one, the CNG Honda Civic, is a passenger car. Detroit currently offers no natural gas-fueled passenger cars.

Filling up a natural gas car’s fuel tank is a cinch

Alabama Governor Robert Bentley Lands Airbus Factory Deal for State

Quite possibly, this is THE biggest industrial jobs deal in Alabama, ever!

Kudos to the Governor, and all who made it happen.

One thing’s for certain – direct & indirect jobs from this deal will be exceedingly superior to those in sawmills & cooperages!

Here’s to you, Governor!

—

Alabama Gov. Robert Bentley rides Airbus momentum in Europe

Published: Wednesday, July 11, 2012, 1:16 PM     Updated: Wednesday, July 11, 2012, 2:08 PM

By George Talbot

LONDON – Gov. Robert Bentley was tired.

He piled into the back of a cab early Wednesday for the ride out to Heathrow Airport, accompanied by a reporter; his wife, First Lady Dianne Bentley; his chief of staff, David Perry; and a pair of security guards.

He’d left Alabama eight days before, traveling nearly 6,000 miles from Montgomery to Hamburg and Stuttgart, Germany, then on to London for the Farnborough International Air Show.

His voice was hoarse and his suit was rumpled. In the past two days alone, he met with

Bob Riley loses Hyundai to Georgia

Governor Bob Riley (R), whom crowed about Hyundai Motor Manufacturing’s construction of a new plant in Montgomery, must be eating crow now.

Apparently, Hyundai will be moving OUT of Montgomery to West Point, GA.

Though federal law requires advance notification of layoffs, Hyundai officials