iPhone Supply Bounces Back, Sketchy Rumors About iPhone 14 Plus, Amazon's Growing Layoffs (Daily Update)

We kick things off with a look at the latest production news from Foxconn’s “iPhone City.” The discussion then turns to iPhone 14 Plus rumors regarding weak sales and Apple management being “seriously” concerned. The update concludes with Neil’s thoughts on Amazon dramatically raising the number of announced layoffs in its corporate ranks.

Hello everyone. We will jump right into today's update.

iPhone Supply Bounces Back

Here’s Fox Business:

“The world's largest iPhone factory has reportedly been brought back to 90% capacity months after workers in China had shut down the plant over the government's COVID-19 restrictions.

Foxconn Technology Group claims it is operating the factory with approximately 200,000 workers in the central Chinese of Zhengzhou, according to a report from Henan Daily, a Chinese state media outlet. The group is Apple Inc.'s largest production partner for their featured smartphone.

In October 2022, Zhengzhou, also known as iPhone City, came to a standstill after thousands of workers stalled production due to the government's strict zero-COVID policies. The protests disrupted supply chains and cost Apple billions over the last few months.

‘At the moment, the order books look good, and the orders will peak from now until a few months after Chinese New Year,’ said Wang Xue, the deputy general manager of the factory, in an interview with the Chinese outlet.”

If the reporting is true, Foxconn’s iPhone City reaching 90% production capacity at quarter end would be a very positive development for an iPhone business that just went through a tumultuous two-month stretch.

A direct implication found with Foxconn’s primary iPhone facilities operating again at near full capacity, as of the end of December, is

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Thoughts on iPhone 14 and 14 Pro Pre-orders, Garmin Trolls Apple, Apple Watch Ultra Battery Life (Daily Update)

Hello everyone.

One clarification regarding iPhone 14 Plus. In yesterday’s update I wrote:

“The iPhone 14 Plus finds itself in a pricing canyon. It’s the third-most expensive iPhone, after iPhone 14 and iPhone SE. However, it’s just $100 less than the 6.1-inch iPhone 14 Pro.”

That should have said "It’s the third-least expensive flagship iPhone.” The broader point is unchanged - the iPhone 14 Plus finds itself in a weird spot within the iPhone line.

With that, let’s jump right in.

Thoughts on iPhone 14 and 14 Pro Pre-orders

Here is the current delivery dates for the iPhone 14 flagships (U.S.):

  • iPhone 14 (Sept 20 to 21) – available Sept 16th

  • iPhone 14 Plus (Oct 7) – available Oct 7th

  • iPhone 14 Pro (Oct 13 to 20) – available Sept 16th

  • iPhone 14 Pro Max (Oct 20 to 27) – available Sept 16th

Apple has embraced an underpromise and overdeliver mantra when it comes to delivery estimates for online orders. Delivery dates almost always end up being pulled forward. This may explain why delivery dates aren’t dependent on iPhone finish color or storage. Apple may be simply providing an estimated delivery range for each model that it is confident it will not just meet but exceed.

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Deconstructing Apple’s “Far Out” Presentation (Part 2) - Daily Update

Hello everyone.

In today’s update, we will wrap up my Apple event review. As a recap, last Thursday we went over my initial impressions regarding event highlights. Yesterday, we talked about the Apple Watch in greater detail. We will now go over AirPods Pro, Fitness+, and iPhone.

Before we jump into today’s update, there is one additional observation from attending the Apple event that was worth sharing.

I couldn’t help but notice how Phil Schiller was walking around the product demo area for what seemed like an extended period.

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The daily updates have become widely read and influential in the world of Apple and technology. They are unmatched in the marketplace in terms of comprehensive analysis and research on all things Apple. Members reside in 60 countries and hold a diverse range of backgrounds and occupations. They include Silicon Valley executives and investors, the largest Apple shareholders, and the leading Apple journalists in the business.

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