Tangles in Apple’s Supply Chain
Image by Michael Schwarzenberger from Pixabay
COVID-Closures Keep Gumming Up the Works
25 APRIL 2022 - The emphasis on the supply chain in Morgan Stanley analyst Katy Huberty’s most recent note seems sensible. Looking over last week’s headlines, the supply chain seems to have been no less chaotic than in weeks prior. A piece from 9 to 5 Mac on Tuesday 19 April had good news/bad news for Apple on the manufacturing front. The good news - iPhone City, nickname for Foxconn’s huge iPhone factory in Zhengzhou, has so far dodged COVID-related factory shutdowns. The bad news - “three other key Apple suppliers in China were (…) forced to halt production [the week before].”
Of course, the concern isn’t just the locations that put parts together to make iPhones. There’s also the factories that make the parts. Just a day later - last Wednesday 20 April, 9 to 5 Mac ran a piece that sounded fairly cataclysmic. That cited a Nikkei Asia report that had “at least half” of Apple’s top 200 suppliers in parts of China “at risk of further COVID-19 lockdowns.” According to 9 to 5 Mac:
The head of display maker AU Optronics said that the lockdowns “could lead to a supply chain cutoff in the worst-case scenario,” and that the problem extends down to the most mundane-sounding – but still crucial – products.
“Some very basic materials such as carton boxes are in serious shortage,” they’re said to have said. That followed a warning a few days earlier from Huawei’s head of consumer tech, Richard Yu, who said, “If Shanghai cannot resume production by May, all of the tech and industrial players who have supply chains in the area will come to a complete halt.”
Chip Shortages Persist
Crazy thing about the supply chain, though: It’s not just COVID-closures kinking it up. A huge issue is the shortage of chips, caused partly by COVID-closures, but largely by growing demand from a wide array of industries - including automotive. As a piece from 9 to 5 Mac on Friday 22 April pointed out:
The biggest issue is not with CPUs and GPUs, but far more mundane chips like display drivers and power management systems. These relatively low-tech chips are used in a huge number of devices, including Apple ones.
There’s a Chinese company called BOE that makes iPhone displays for Apple. At least it does in theory. According to 9 to 5 Mac, Apple had hoped for 40 million BOE displays this year. A lack of necessary chips pushed that expectation down to 30 million. Now 30 million may be overly optimistic. The report quotes a piece from TheElec, indicating that a lack of display drivers, plus problems producing panels with the chips it has, are playing havoc with expectations. “BOE’s production problem from the situation is expected to continue up to at least May,” according to sources for TheElec.
Ming-Chi Kuo: Apple to Shift Some Top-Tier Production Out of China
25 APRIL 2022 - It would be difficult to say that China has been more trouble for Apple than it’s been worth. However, with countless allegations of human rights abuses, political tensions with the U.S., and China continually flipping the switch on the supply chain, Apple may finally be ready to move some of its eggs to other baskets. Which eggs and where we do not know, though indication from TF International analyst Ming-Chi Kuo is that first version, top tier products from Apple hay eventually come first from outside the Middle Kingdom.
Last Tuesday, Young MC hit with a couple of telling Tweets. According to the first:
Apple's new product introduction (NPI) sites are almost [all] in China. It was the first time for Apple to evaluate building NPI sites in non-China seriously when the COVID-19 outbreak first occurred about two years ago, but internally it only proceeded to the proposal stage.
“However,” begins the second Tweet:
…after the recent lockdowns in China, to diversify supply chain management risks, building NPI sites in non-China is no longer a proposal but an action plan.
Which eggs and where we do not know.
Apple Retail Locations Start Unionization Moves
Apple Grand Central Terminal - Image via Apple
Union Moves in a Big Apple Apple Store
25 APRIL 2022 - Individual Apple stores in the U.S. are making moves toward unionization. 9 to 5 Mac has word of “Fruit Stand Workers United,” an attempt to form a union in Apple’s Grand Central Terminal in New York City. Their website, at fsworkersunited.org, has organizers saying:
Grand Central is an extraordinary store with unique working conditions that make a union necessary to ensure our team has the best possible standards of living in what have proven to be extraordinary times with the ongoing COVID-19 pandemic and once-in-a-generation consumer price inflation.
The site says organizers are looking for three things, broadly:
…better pay for all covered workers, more robust benefits, and a thorough analysis of our work conditions, mainly relating to health and safety.
Organizers are currently in the signature gathering phase, according to the site. No word on a timeline for next steps.
Atlanta’s Apple Cumberland Mall - Image via Apple
Union Moves in a Big Peach Apple Store
Slightly ahead of their friends up north, a piece from TechCrunch says workers at the Cumberland Mall Apple store in Atlanta, Georgia have filed for a union election. According to the piece:
Over 70% of the store’s 100 employees signed union authorization cards, demonstrating their interest in moving forward with formal recognition.
Additionally, the piece says:
If more than 50% of employees vote to unionize through an election hosted by the National Labor Relations Board (NLRB), then Apple will be required to recognize the bargaining unit.
The piece has Derrick Bowles, Apple Genius and union proponent, saying in a statement:
Apple is a profoundly positive place to work, but we know that the company can better live up to their ideals and so we’re excited to be joining together with our coworkers to bring Apple to the negotiating table and make this an even better place to work.
No word in that piece on when the vote will be held.
Apple Maps the Planet
Apple Maps Expands Cycling Directions in U.S. Midwest
25 APRIL 2022 - A few areas in the States got some updated biking features in Apple Maps last week. iDownloadBlog highlights a post in Justin O’Beirne's site. According to that, “cycling directions are now available in all of West Virginia and Ohio, as well as some parts of Illinois, Indiana, Michigan and Virginia.” New population centers covered include Chicago, Cincinnati, Cleveland, Columbus, Detroit, and Indianapolis. “With this latest update,” iDownloadBlog says, “Apple Maps now provides cycling directions for almost 26% of US territory, with almost 52% of the country’s population covered.”
Improved Apple Maps Launched in Germany and Singapore
More dazzling than biking ‘round Circle City are the big changes for Apple Maps in Germany and Singapore. A separate piece from iDownloadBlog says both of those countries have gotten the new and improved Apple Maps vibe, complete with “3D landmarks, street-level photography, improved navigation, more detailed road coverage and other perks.” The piece says “Singapore is the first Asian country to get refreshed Maps data.” Germany is not.
Apple Music Adds DJ Mixes in Spatial Audio
Image via Apple Music
25 APRIL 2022 - You want that going to the club vibe without having to breathe what other people are breathing or just feeling like a creepy old person? Turn your ears to Apple Music. Engadget says Cupertino’s audio streamer has added DJ mixes in Dolby Atmos spatial audio, promising “a more immersive dance music experience…” The piece says the initiative kicked off last week “with a One Mix set from Detroit’s Jeff Mills, “as well as 15 Boiler Room sets from stars like Boys Noize and The Blessed Madonna.” Engadget reminds readers:
Spatial audio is only automatically enabled for AirPods and some Beats headphones. You can use capable third-party gear, but you'll need to manually enable support and forego head tracking.
Apple Watch Dancing Activity Challenge Set for Friday 29 April
25 APRIL 2022 - If you’re the type for whom the music takes control… if you are one to let the rhythm move you, you may want to join Apple’s 20 minute dance party. MacRumors says it is time once again for an Apple Watch Activity Challenge. I know! We just had one Friday. Last Friday was Earth Day. This Friday, it is International Dance Day. According to MacRumors:
To get the International Dance Day award, Apple will ask Apple Watch users to do a dance workout of 20 minutes or more on April 29.
I can mash-potato. I can do the twist. Can I do so for 20 minutes, though? Folks who can (and do) will get a groovy virtual medallion, as well as animated stickers to stick in Messages and FaceTime. The notice from Apple has not popped yet, though Apple Watch wearers can expect it to do so, soon.
Bloomberg Sees Potential for Foxconn Factory COVID Closures
15 APRIL 2022 - The goods news: Foxconn’s main iPhone factory in Zhengzhou is running fill tilt. The bad news: Foxconn’s main iPhone factory in Zhengzhou is just a few positive COVID tests away from going lights out. That seems to be the message from a Bloomberg piece. According to that:
Local authorities in Zhengzhou, where Foxconn Technology Group operates its main iPhone-making complex, ordered compulsory testing for areas that include the plant and adjacent parts of the city.
The worry, from the business-centric Bloomberg, is that an outbreak will lead to a shutdown, which would seriously slow the Apple cash cow that is iPhone. According to the report, the “mass-testing exercise represents a risk because Chinese officials have been quick to lock down areas in the event of positive tests.” Of course, the risk of not closing is more COVID. Sorry to be “that guy,” but it should be remembered - we’re talking about living, breathing people, who’d probably like to go on living and breathing.
That said, Bloomberg’s business brain does note that China has already shutdown iPhone maker Pegatron and MacBook maker Quanta over the past few weeks, “spelling more trouble for an already fragile global tech supply chain.”
As far as iPhone goes, if there is a disruption, most analysts think that will lead to delayed sales, not lost sales. Commenting on the possibility of iPhone disruption earlier this week, Piper Sandler analyst Harsh Kumar argued folks who want iPhones and can’t get them will wait until iPhones become available.
Bloomberg: Apple Testing a Slew of M2 Macs
15 APRIL 2022 - Oh it’s one of those rumors I hate! But, it’s Bloomberg and it’s big and WWDC is just around the corner. Bloomberg’s Mark Gurman says developer logs indicate that Apple is testing a host of Macs running M2 processors. According to the report:
The company is testing at least nine new Macs with four different M2-based chips -- the successors to the current M1 line -- with third-party apps in its App Store, according to the logs, which were corroborated by people familiar with the matter. The move is a key step in the development process, suggesting that the new machines may be nearing release in the coming months.
Coming months? That’s when WWDC is - Monday 6 June through Friday 10 June in whatever orbit you happen to inhabit.
Gurman’s got a list of machines being tested, including M2 versions of MacBook Air, Mac mini, MacBook Pro, and a machine he says is a Mac Pro. He does, of course, include the usual caveat: Just because it’s being tested doesn’t mean it’ll be released. That said, you’ve gotta figure Apple will announce something along that line at WWDC, don’t you?
We’ll see what happens in a few weeks.
More Freakin’ Facebook Follies
Apple Blasts Facebook for ~50% Metaverse Commission
15 APRIL 2022 - When it came out earlier this week that Facebook will be charging close to a 50% commission for apps and such sold in its version of the metaverse, I took umbrage. Facebook has derided Apple in the past for taking commissions in the App Store of 15% to 30%, saying such high rates stifle competition and make it harder for the little guy. You can believe that. Lots of people do. But you can’t then turn around and charge a rate higher than the rate about which you’re complaining. I mean, you can… just ask Facebook.
It was the hypocrisy that got to me. And it seems to have gotten to Apple as well. MarketWatch got a statement out of Apple on the - oh… let’s go ahead and call it an issue, shall we? Apple spokesperson Fred Sainz emailed the business site, saying:
Meta has repeatedly taken aim at Apple for charging developers a 30% commission for in-app purchases in the App Store — and have used small businesses and creators as a scapegoat at every turn… Now — Meta seeks to charge those same creators significantly more than any other platform. [Meta’s] announcement lays bare Meta’s hypocrisy. It goes to show that while they seek to use Apple’s platform for free, they happily take from the creators and small businesses that use their own.
Also, they’re kind of destroying society. My words, not his.
Mobile Analytics Firm Adjust Says More People Opting-In to App Tracking
Earlier this week we heard estimates on how much Apple’s implementation of App Tracking Transparency would cost the social experiment run amok from 2021 through 2022. Close to ~$20 billion, according to some. One assumes that’s based on the number of people refusing to let apps track them, though that number might be getting smaller across the board.
9 to 5 Mac has new numbers from mobile analytics firm Adjust. Data from the 2,000 most popular apps in the firm’s database has more people being cool being tracked. “In May 2021,” the piece says, “opt-in rates were at around 16%.” A year later, the piece says, “that number has grown to 25%…”
Gamers are even cooler with the collection. On average, the piece says “30% of [game] users have allowed developers to collect their data for advertisements.” Particularly popular games really rake it in, though. Some of the most popular tracked by Adjust have hit opt-in rates of as much as 75%. While consent rates vary widely, Adjust says it expects:
…to see a continued upward trend as more users understand the value of opting in and receiving personalized advertisements — something the gaming industry has been most successful in presenting until now.
Oy.
Google Releases “Switch to Android” App
15 APRIL 2022 - If you’re looking to make the switch from iPhone to Android, allow me to ask, who hurt you? And will hurting yourself more really make that better?
Ah well. You know best. Also, there’s an app to help you on your way. TechCrunch says Google this week launched the Switch to Android app in Apple’s App Store in a number of countries - including the U.S. “As expected,” the piece says:
…the app promises to make the transition between mobile platforms easier to manage by helping users import their contacts, calendar, photos, and videos to their new Android phone.
The app also instructs users how to turn off Apple’s iMessage in order to get text messages on their new device and has them connect with iCloud to migrate their photo and video library to Android.
I guess turnabout is fair play. TechCrunch says Apple launched an app on the Google Play Store to help Android users Move to iOS back in 2015.
Apple Posts Short Trailer for Makur Maker Docuseries
15 APRIL 2022 - We’re a week away from the Makur Maker docuseries, and Cult of Mac says Apple TV+ has put out the teeny-tiniest trailer for it. Called “The Long Game: Bigger Than Basketball,” past reports have described the show, saying:
The docuseries is an intimate look at Makur’s life as a student athlete with a dream of making it to the NBA, while unexpected physical challenges and a global pandemic threatens his college career. Off the courts, “The Long Game: Bigger Than Basketball” explores how his journey from fleeing war-torn South Sudan as a child and his tight-knit support system led him to go to a historically black university, and in turn, allowed him to make an impactful statement in the wake of America’s cultural response to the Black Lives Matter movement.
The series is five episodes long. All five hit Apple TV+ next Friday 22 April. The trailer is 30-seconds long. You can catch it on Twitter, because why put it where people will look for it?
For MLB, Apple TV+ Deal is About Exposure
15 APRIL 2022 - If you’re wondering why Apple is doing “Friday Night Baseball,” you’ve gotta figure the answer is exposure. If you’re wondering why Major League Baseball’s doing it, the answer - it turns out - is exposure.
Local broadcast stations used to carry baseball. Then cable sports networks signed deals for MLB, which was fine because everybody had cable. In the age of cord cutting, America’s pass time runs the risk of being passed by.
Enter the Apple TV+ deal. Apple Insider highlights an interview between MLB chief revenue officer Noah Garden and the Los Angeles Times. Quoting that:
Even in local markets, Garden said, the linear bundle strategy has been under pressure — particularly with the rise of cord-cutters and those who have never paid for a traditional cable or bundle subscription.
"And so the opportunity to have a partner such as Apple, who can distribute our product — in this case, doubleheaders on Friday nights — to a huge domestic but also international audience is something that appealed to us," Garden said.
Reviews of the first week’s games were not awesome, but there’s plenty more ahead. “Apple TV+ will be airing Friday Night Baseball games each Friday for free until June 24,” says Apple Insider. Tonight’s double header features the Tampa Bay Rays at the Chicago White Sox, followed by the Cincinnati Reds at the LA Dodgers. Coverage of game one starts at 6:25 Eastern/3:25 Pacific. Game two coverage starts at 9:25 Eastern/6:25 Pacific on Apple TV+.
Apple Pay Earth Day Promo Generates Donations to WWF
Image via TheAwesomeShirt.com
15 APRIL 2022 - Using Apple Pay to buy stuff from Apple gives a dollar to the planet or something. iDownloadBlog says the Cupertino-company:
…will be making a $1 donation to the World Wildlife Fund (WWF) for every Apple Pay transaction made within its physical retail stores, via the online store, or in its Apple Store app.
While the promotion is associated with Earth Day, there’s more than one day to take advantage. The promo actually began on Thursday 14 April. If runs through next Friday 22 April, which is Earth Day.
When we’re gonna party like it’s… and sip Bacardi like it’s… yeah.
Ming-Chi Kuo: Pegatron COVID Closures Affecting MacBook Availability
14 APRIL 2022 - COVID closures in the supply chain in China are causing slowdowns for the Mac. A piece from Bloomberg (via Yahoo News) says:
More than 30 Taiwanese companies including Pegatron Corp. and Macbook maker Quanta Computer Inc. have now halted production in the electronics hubs of eastern China to comply with local Covid-related restrictions, spelling more trouble for an already fragile global tech supply chain.
It’s the Quanta closure that consumers are likely to feel most evidently. According to TF International analyst Ming-Chi Kou, they’re currently the only company making MacBook Pros for Apple. He hit Twitter on Tuesday, saying that “the delivery time of high-end MacBook Pros (Quanta as the sole supplier) […] has roughly increased by 3-5 weeks after the China lockdown.”
A Dig at iPhone SE
It’s hard to tell whether he’s being clever or just stating fact (nuance has little home on Twitter), but the analyst had another Twitter post that seemed to have good news, but really probably didn’t. According to the analyst, the Pegatron closure is having no impact on iPhone SE availability. It could be that Apple had enough units built ahead of the phone’s release. Of course, it could also be that nobody wants the thing. That seems to be Young MC’s take. Quoting the other Tweet:
The delivery status of the new iPhone SE made exclusively by Pegatron remains “in stock” on Apple's online stores in many countries after the China lockdown, implying that the current inventories can still meet lackluster demand.
Eh. To me, iPhone SE has always looked like the “tortoise” to the annual iPhone’s “hare.” I doubt it’ll ever win, but it runs a slow and steady race. But, that’s just a way outside, “seems like how it oughta work” line of thinking. Perhaps not even worth the paper on which it’s not even printed.
Apple Outs New Colors for Beats Studio Buds
14 APRIL 2022 - News of new hardware you can get and stick in your head holes. Apple Insider has word of new spring colors for Beats Studio Buds. That’s “spring colors” as in “released in the spring.” Only one of the three new hues is decidedly “springy.” That would be the Sunset Pink. Moon Gray and Ocean Blue feel winter and summer respectively, to me.
Considered a decent alternative to Apple’s own AirPods line, past reports say:
The wireless earbuds feature a compact round design without any “stems” dropping below the ears, active noise cancellation with up to five hours of listening time per charge, hands-free “Hey Siri” support, IPX4-rated sweat and water resistance, Find My support, and a USB-C wired charging case.
In an interesting move for availability, you can get the three new pairs in one place, though you can’t get them all everywhere. While all of them are available through the Apple Store, they’re split among outside retailers. According to Apple Insider, “Amazon gets Moon Gray, Best Buy has the Ocean Blue, and Target is selling the Sunset Pink Beats Studio Buds.”
The new Beats Studio Buds join the original range of black, white, and red. They also retail for the original price of $149.99.
Facebook Follies
Study: App Tracking Transparency to Cost Facebook ~$13B in 2022
14 APRIL 2022 - Year two of Apple’s App Tracking Transparency looks like it’ll take a serious chunk out of the online ad industry - most of that at Facebook’s expense. App Tracking Transparency is a set of standards set by Apple where companies that want to track an iOS user’s activity across various applications and the web have to get a user’s permission to do so. Not surprisingly, when you ask people whether you can watch every single thing they do, they tend to say “no.” But large parts of businesses like Facebook’s were built on that, thus the hurt.
Facebook has said it’ll take a $10 billion hit this year due to ATT. That’s on top of the $8.1 billion lost in 2021, according to Cult of Mac. But, a piece form Apple Insider has word of new analysis that thinks $10 billion this year is actually a little low. The site has the firm Lotame [low-da-mee] says that Apple’s “change will have an impact on [affected] companies of nearly $16 billion,” 81% of which will come out of Facebook. According to the piece:
That 81% for Facebook represents an estimated $12.8 billion. Lotame estimates the rest of the lost revenue as $546 million for Snap, $323 million for Twitter, and $2.2 billion for YouTube.
It’s unclear whether this hurt will stop or companies will just get used to it. Apple Insider says Apple’s introduced tools to help companies through the transition. Facebook is said to have done the same. According to the report:
…Lotame even says that it will not continue researching the topic. Lotame says that it expects “other shocks” to affect the advertising industry, and that by the second half of 2022, ATT's impact will have been “cauterized.”
Facebook’s VR Sales Commission: Half (!!!)
No offense to Facebook, but Facebook really is the worst. And I do, by the way, mean offense to Facebook. It is a platform that siphons as much personal information as it can, it allows nefarious third-parties to siphon as much personal information as they can, it allows racist and authoritarian content to thrive, and - oops - throws democracy itself into peril.
All of that, and it’s hypocritical. Pardon my Leno, but “did you hear about this?” Facebook plans to take a commission of nearly 50% on sales made in its version of the metaverse. I’m no Pythagoras, but 50% sounds like more than the 30% Apple charges, an amount about which Facebook has complained. According to a piece from MacRumors:
A Meta spokesperson confirmed to CNBC Wednesday that Meta will take an overall cut of up to 47.5% on each transaction. That includes a “hardware platform fee” of 30% for sales made through the Meta Quest Store, where it sells apps and games for its virtual reality headsets. On top of that, Horizon Worlds [which sounds like Facebook’s Roblox or Sansar], will charge a 17.5% fee.
This from the company that said (according to MacRumors):
…that the App Store cut makes “opportunities for creators to make money from their work” harder. Facebook has a long history of calling Apple's App Store and its 15% to 30% commission "monopolistic" and harmful to customers, adding the platform “blocks innovation [and] blocks competition.”
But 50% is cool.
Facebook is seriously the worst.
Apple TV+ Posts True Crime Podcast “Run, Bambi, Run”
14 APRIL 2022 - From the people who brought you a TV show about a true crime podcaster comes a true crime podcast. TechCrunch has word of a new, Apple Original podcast called “Run, Bambi, Run.” According to the piece:
The eight-part series will explore the story of Laurie “Bambi” Bembenek, a 21-year-old Milwaukee police officer who was dubiously convicted of killing her new husband’s ex-wife, and her years-long quest to clear her name.
I’ve not heard it yet, but the folks over at The Mac Observer really like it. There are a couple of interesting things about the show from a business side. First, “Run, Bambi, Run” is credited to Apple TV+, even though there’s no TV show tied to it (maybe that’s what the “+” is for). Second, despite being produced by Apple, it’s not exclusive to any Apple platform. TechCrunch says “episodes are published both on Apple Podcasts and via RSS.” I found it easily in Overcast and the Amazon Music app. Two episodes out so far. New episodes are scheduled to hit each Monday through the series’ run.
From the Moon to Richmond: “Mankind’s” Balfour Joins “Lasso” Cast
Jodi Balfour - Image via IMDB
14 APRIL 2022 - One of the cast members of “For All Mankind” is headed to Richmond. Deadline says Jodi Balfour, Ellen on the sci-fi series, is joining “Ted Lasso” for season three.
Balfour’s credits run deeper than Apple’s stream. She’s also been on the Netflix series “The Crown,” the Cinemax series “Quarry,” and the Canadian drama series “Bomb Girls.” As for the new gig, Deadline says:
Balfour will play Jack, a charming venture capitalist. In addition to Jason Sudeikis as Ted Lasso, she joins the returning series regular ensemble cast including Hannah Waddingham, Brendan Hunt, Jeremy Swift, Juno Temple, Brett Goldstein, Phil Dunster and Nick Mohammed.
Noel Fielding to Headline Untitled Historical Comedy for Apple TV+
Noel Fielding stars in Apple’s upcoming untitled comedy series, coming soon to Apple TV+.
14 APRIL 2022 - News of a new comedy series for Apple TV+ that seems to have everything but a title. The Cupertino-streamer issued a press release this week, announcing an untitled series starring Noel Fielding. Known for “The Mighty Boosh” and “The Great British Bake Off,” Apple’s press release says:
Fielding will star as Dick Turpin, the legendary British highwayman. In this irreverent retelling, Dick is the most famous, but least likely of highway robbers, whose success is defined mostly by his charm, showmanship and great hair. Together with his gang of lovable rogues, Dick rides the highs and lows of celebrity — and does what he can to escape the clutches of the Thief Taker General.
See? Everything but a title. Well… and a release date. Now word on when the nameless show-and-show will hit the stream.
Apple Outs Trailer for Second Season of “Tehran”
14 APRIL 2022 - Season-two of “Tehran” is just around the corner and Apple TV+ has released a trailer for it. The description has a spoiler for the first season, so… I kind of don’t want to read it to you. I’ve heard good things about that first season, though. The second season brings a bit more star power, with two-time Emmy Award winner and Academy Award nominee Glenn Close joining the cast.
Season-one of “Tehran” is available to stream now on Apple TV+. The first two episodes of season-two will hit on Friday 6 May. Between now and then, you can catch the season two trailer below.