Apple Inc. is getting closer to launching its next iPhone, as it works to stay ahead of competition from smartphone rivals such as Samsung Electronics Co.
Apple has ordered key components for a new iPhone it is aiming to launch by the end of September, said people familiar with the situation.
These people said the new iPhone is expected to be similar to the current iPhone 4, but thinner and lighter with an improved eight-megapixel camera.
Apple is said to be ordering key components for a new iPhone that's thinner, lighter and holds an improved eight-megapixel camera. But production problems may delay its launch. WSJ's Jake Lee and Yun-Hee Kim discuss.
According to unnamed sources, Apple’s iPhone 5 will include a curved glass touchscreen display, perhaps similar to that of the Google Nexus S, according to a new online report.
According to a May 23 report, citing unnamed sources.
“Cover glass makers are reluctant to commit investment to the purchase of glass cutting equipment due to the high capital involved. Apple reportedly has purchased 200-300 glass cutting machines to be used by glass cutters.”
Those machines are supposedly stored at various assembly plants in anticipation of covered-glass production ramping to acceptable levels. Apple is partnering with its suppliers over manufacturing processes such as glass-cutting and lamination.
One person familiar with the matter said the new iPhone will operate on Qualcomm Inc.'s wireless chips. Apple's current iPhone 4 uses chips from a former unit of German chip maker Infineon Technologies AG that is now owned by Intel Corp. in the model available to most operators. It uses Qualcomm chips for a version for U.S. carrier Verizon Wireless.
A spokeswoman at Apple declined to comment.
Anticipation for a new iPhone—Apple's largest product by revenue—has been mounting after the Cupertino, Calif., company chose not to unveil its latest smartphone model at its annual developers' conference in early June as it has done in the past.
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Apple at the time said a new version of its mobile operating system would be available this fall. That fueled speculation the latest iPhone would also be introduced at the same time.
A person briefed on Apple's product plans said the company initially planned to launch its next iPhone this summer as it usually does, but the device wasn't ready in time.
Two people familiar with the situation cautioned the next iPhone could be delayed further if contract manufacturer Hon Hai Precision Co., which assembles the iPhone for Apple, couldn't improve its production yield rate.
Hon Hai Chairman Terry Guo said last month that the yield rate of Apple's touch-screen devices hasn't been satisfactory and has hurt its profitability.
Mr. Gou said.
"The touch-screen devices are so thin. It's really difficult to install so many components into the iPhones and iPads. We hope to raise the yield rate and volume in the second half, which will help improve our gross margin."
A spokesman for Hon Hai declined to comment.
The iPhone business comprised about half of the company's $24.7 billion in revenue in the quarter ended March 26. Since launching the device in 2007, Apple has sold 108.6 million iPhones.
| Fiscal Yr | Q1 | Q2 | Q3 | Q4 | Total |
|---|---|---|---|---|---|
| 2007 | 270,000 | 1,119,000 | 1,389,000 | ||
| 2008 | 2,315,000 | 1,703,000 | 717,000 | 6,890,000 | 11,625,000 |
| 2009 | 4,363,000 | 3,793,000 | 5,208,000 | 7,367,000 | 20,731,000 |
| 2010 | 8,737,000 | 8,752,000 | 8,398,000 | 14,102,000 | 39,989,000 |
| 2011 | 16,240,000 | 18,650,000 | 34,890,000 | ||
| Fiscal Yr | Oct-Dec | Jan-Mar | Apr-Jun | Jul-Sep | 108.624 Million |
This table highlights key differences between models.
| Model | iPhone | iPhone 3G | iPhone 3GS | iPhone 4 | |
|---|---|---|---|---|---|
| Status | Discontinued | Discontinued | In Production | In Production | |
| Display | 89 mm (3.5 in) glass LCD, 3:2 aspect ratio | ||||
| 480 × 320 px (HVGA) at 163 ppi |
960 × 640 px at 326 ppi | ||||
| Storage | 4, 8, or 16 GB | 8 or 16 GB | 8, 16, or 32 GB | 16 or 32 GB | |
| CPU Core | 620 Mhz to 412 MHz ARM 1176JZ(F)-S |
833 MHz (ucd to 600 MHz) ARM Cortex-AB | 1 GHz (ucd to 800 MHz) Apple A4 | ||
| Memory | 128 MB DRAM | 256 MB DRAM | 512 MB DRAM | ||
| Connectivity | USB 2.0/dock connector | In addition to previous: assisted GPS, includes earphones with mic |
In addition to previous: voice control, digital compass, Nike+, includes earphones w/ remote and microphone |
In addition to previous: 3-axis gyroscope, Dual-microphone noise supression, microSIM |
|
| Camera | 2.0 MP, still images only | 3.0 MP 30 fps VGA video |
Rear 5.0 MP Front 0.3 MP (VGA) 30 fps 720p HD video |
||
| Materials | Aluminum, glass and black plastic | Glass, plastic, and steel; black or white (white not available for 8 GB models) | Black or white aluminosilicate glass and stainless steel | ||
| Power | Built-in, non removable, rechargeable lithium-ion polymer battery | ||||
| Released | 4 and 8 GB: June 29, 2007 16 GB: Feb 5, 2008 |
July 11, 2008 | 16 and 32 GB: June 19, 2009 Black 8 GB: June 24, 2010 | GSM (Black): June 24, 2010 CDMA (Black): February 10, 2011 GSM and CDMA (White) April 28, 2011 |
|
| Discont'd
|
4 GB: September 5, 2007 8 and 16 GB: July 11, 2008 |
16 GB: June 8, 2009 Black 8 GB: June 4, 2010 |
Black 8, 16 and 32 GB: June 24, 2010 |
Still in production | |
While the iPhone has dominated the smartphone market, competition has intensified as other manufacturers have debuted similar phones running Google Inc.'s Android mobile operating system. The rivalry has escalated of late with Korean mobile-phone maker Samsung, with which Apple has been embroiled in a legal battle. Both companies have accused the other of infringing its intellectual property.
Global Smartphone Unit Sales and Market Shares by OS - Q1 2011 versus Q1 2010
Global Smartphone Unit Sales and Market Shares by Brand - Q1 2011 versus Q1 2010
US Smartphone Market Shares by OS - April 2011
On Tuesday, Apple filed a complaint against Samsung with the U.S. International Trade Commission seeking to bar U.S. imports of Samsung smartphones and tablets after Samsung last week requested that the ITC exclude certain iPhone and iPad models from the U.S. market.
Wall Street's projections for a new iPhone are relatively conservative because analysts don't expect the device to have the kind of major improvements and design changes that will persuade current iPhone owners to upgrade their devices early.
Still, said a person at one of Apple's suppliers.
"Apple's sales estimates of the new iPhone are quite aggressive. It told us to prepare to help the company meet its goal of 25 million units by the end of the year. The initial production volume will be a few million units."
Investors expect a bigger boost to Apple's phone business next year. People briefed on Apple's plans said the company is planning a major iPhone revamp then, with one person saying the company has been experimenting with features such as a new way of charging the phone.
Apple has also been working on a less-expensive phone with new features such as an edge-to-edge screen, according to this person.
COMMENTARY: In a blog article dated October 23, 2010, I profiled Foxconn International, the division of Hon Hai Precision Co. that assembles Apple's iPhones, iPods and iPads in a virtual stronhold and under extreme secrecy (a strict requirement of Apple CEO Steve Jobs). Security is extremely high and Foxconn's security guards have been physical with repoter's and any other individuals trying to access the plant without authorization.
When I first read this article, I was incredulous and appalled at what I have read about Foxconn's plants in China, their high security and secrecy, and the oppressive treatment of factory workers. In the twelve months prior to February 2010, 11 Foxconn International factory workers committed suicide without any explanation.
Rumors abound of the oppressive worker conditions, 15-20 hour work days, sometimes without breaks, just so that Apple's products can be delivered on time. Worker's have been sworn to secrecy. The shear number of suicides defy all statistical odds. How can so many workers from one Foxconn International plant commit suicide? Were these factory workers killed by Foxconn International for violating secrecy or not meeting their production quota's, then the evidence covered up, and their deaths blamed as a suicide? Makes you wonder, doesn't it?
I appeal to all Apple evangelists who home those "magical" devices to please destroy them in protest and support of Foxconn's factory workers. Don't let Steve Jobs and his henchmen in China get away with this. If you don't want to destroy your iPad, please donate them to a needy cause. I will find good use for them HERE.
Courtesy of an article dated July 7, 2011 appearing in The Wall Street Journal Technology, an article dated May 24, 2011 appearing in Webestigate and WikiPedia
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