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☆ Apple supplier Foxconn expects decline in consumer electronics demand, prioritizes global growth
▼ + stars: | 2023-03-15 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Major Apple supplier Foxconn reported a 10% year-over-year decline in profit for 2022 and anticipated a decline in consumer electronics demand for the full year ahead, the company said in its earnings report Wednesday. The negative sentiment reflected Apple's muted expectations for consumer sales. The company added iPhone sales will decline less in the March quarter compared to the Dcember quarter. Taiwan-based Foxconn is a major manufacturer for consumer technology firms, but is best known for its relationship with Apple, which relies on Foxconn to produce and assemble its iPhone, among other products. The Chinese government has since pulled back on the most aggressive of its Covid protocols, but Apple and other major technology companies have emphasized to suppliers a need to diversify beyond China.

☆ A TikTok ban or forced sale could lead to major collateral damage for US tech companies like Apple and Chinese apps like Shein
▼ + stars: | 2023-03-15 | by ( Dan Whateley | ) www.businessinsider.com time to read: +9 min

"A big Chinese balloon in the sky and millions of Chinese TikTok balloons on our phones. But US tech companies that rely on data collection for advertising sales or other business practices have fought to curb such regulations. Still, efforts by members of Congress to pass federal legislation around data privacy, such as the American Data Privacy and Protection Act, have faced an uphill battle. Apple's 2021 user privacy changes stunted ad revenue at Facebook and Snapchat-maker Snap, for example. But blocking companies from gathering private information from users could also be a more effective path to protecting Americans while maintaining an avenue for Chinese companies to participate in the global economy.

☆ The war against TikTok won't solve the 'national embarrassment' of how poorly the US protects your data
▼ + stars: | 2023-03-08 | by ( Dan Whateley | ) www.businessinsider.com time to read: +8 min

"A big Chinese balloon in the sky and millions of Chinese TikTok balloons on our phones. TikTok has hurt its own cause when it comes to its reputation around data privacy. For example, the company misrepresented how US user data was managed and then its parent company monitored the locations of reporters who exposed its practices. Still, efforts by members of Congress to pass federal legislation around data privacy, such as the American Data Privacy and Protection Act, have faced an uphill battle. Apple's 2021 user privacy changes stunted ad revenue at Facebook and Snapchat-maker Snap, for example.

☆ As parliament meets, China keeps would-be protesters at bay
▼ + stars: | 2023-03-07 | by ( Engen Tham | ) www.reuters.com time to read: +4 min

[1/2] Demonstrators hold up signs during a protest over the freezing of deposits by some rural-based banks, outside a People's Bank of China building in Zhengzhou, Henan province, China July 10, 2022, in this screengrab from video obtained by Reuters. Text in foreground reads, "Henan Bank, return to us our legal deposits! The people's life-saving deposits!" China has a low tolerance for group displays of discontent, even if anger is not directed against the government. Some of those who spoke with Reuters declined to use their full names due to the sensitivity of the matter.

The city of Zhengzhou in China has seen its fiscal revenue drop and total debt grow in recent years. As China tries to turn the page on one of its worst stretches of growth since the 1970s, its economy is being weighed down by the colossal debts of its local governments, which swelled during the pandemic and are starting to come to a head. Xi Jinping ’s zero-Covid campaign saddled cities with billions of dollars in unplanned expenditures for mass testing and lockdowns. The Chinese leader’s crackdown on excessive property-market leverage led to a sharp drop in land sales, depriving cities of one of their biggest revenue sources.

☆ Foxconn reports fall in Feb sales, sticks to Q1 outlook
▼ + stars: | 2023-03-05 | by ( ) www.reuters.com time to read: +2 min

Compared to the previous month, revenue dropped 39.12%, although cumulative sales for the first two months of the year jumped on-year 17.94% thanks to January's particularly strong performance when Zhengzhou operations began getting back on track. "Based on the revenue performance in the first two months, the outlook for first quarter 2023 is roughly in line with market expectation," Foxconn said without elaborating. Foxconn shares have risen 2.6% so far this year, underperforming the broader Taiwan market (.TWII) which is up 10.4%. The company reports fourth-quarter earnings on March 15, when it will also elaborate on its outlook. ($1 = 30.4980 Taiwan dollars)Reporting by Ben Blanchard; Editing by William Mallard and Tom HogueOur Standards: The Thomson Reuters Trust Principles.

Such efforts to attract foreign investment come as the pandemic and geopolitical tensions push companies to diversify their supply chains away from China. The Commerce Ministry said Thursday that for the first time, it would launch events for an "Invest in China Year." Apple later said the Zhengzhou factory disruptions would delay deliveries of some iPhone 14 models. He also noted "serious challenges" to attracting foreign investment. Those include unfair competition with local players in China due to industrial policies, lack of legal protection for foreign business in China and geopolitical risks, Wang said.

☆ Foxconn chairman meets senior officials in China's Henan - provincial govt
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: 1 min

BEIJING, Feb 22 (Reuters) - Foxconn Chairman Liu Young-way met with the party chief of China's Henan province, home to the company's iPhone plant that was hit late last year by a COVID-19 outbreak, the provincial government said on Wednesday. Liu, who departed on Tuesday for a four-day inspection of the plant in the provincial capital of Zhengzhou, has met Lou Yangsheng, the Communist Party chief of Henan province and Wang Kai, provincial governor, the statement said. Henan pledged broad support for businesses and hoped Foxconn would continue to expand in the province, the statement added. Reporting by Ethan Wang and Meg Shen; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ China's millennial managers are confronting a pissed-off wave of Gen-Z staff out to 'rectify' the workplace
▼ + stars: | 2023-02-22 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +8 min

China's Gen Z is out to "rectify" the workplace, and they want their millennial bosses to give in. The Weibo hashtag "The post-2000s generation is rectifying the workplace" is a forum filled with Gen Z rage. The hashtag documents Chinese Gen Z rage in all its varied formsIt is unclear exactly how the hashtag started. At times, the posts on the Gen Z workers' threads devolve into rants about their "evil" millennial bosses. The rumblings from Gen Z, however, stand in stark contrast to narratives about Chinese millennials that have dominated popular culture.

☆ Foxconn chairman to visit COVID-hit iPhone plant in China -source
▼ + stars: | 2023-02-21 | by ( Sarah Wu | ) www.reuters.com time to read: +1 min

TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Foxconn (2317.TW), formally known as Hon Hai Precision Industry Co, declined to comment. The source declined to be identified as they were not authorised to speak to the media. The Taiwanese company's iPhone plant was hit late last year by a COVID-19 outbreak that prompted thousands of worker departures and unrest, as well as production disruptions. In January, Foxconn said output at its Zhengzhou plant had "basically returned to normal."

☆ China has U-turned on almost all major policies it put in place in the last 3 years — and it's not surprising, given the state of its economy
▼ + stars: | 2023-02-16 | by ( Huileng Tan | ) www.businessinsider.com time to read: +10 min

But the country reversed some major policies in response to the abysmal GDP growth. China's GDP grew by 3% in 2022 — the worst since the chaotic Cultural Revolution ended. Most recently, after three years of pandemic lockdowns and isolation, China abruptly reversed course and abolished its zero-COVID policy — leaving the world guessing why. China's GDP grew only 3.0% in 2022 — the worst in nearly half a century since the chaotic Cultural Revolution ended. China's GDP growth is vital because it is the world's second-largest economy after the US, so it's a driving force for global investment and trade.

☆ BYD to build $1.2 bln EV battery plant in central China - website
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, Feb 14 (Reuters) - BYD , the world's largest maker of electrified vehicles, plans to invest $1.2 billion to build a new factory for its batteries in China, according to environmental appraisal filings. BYD's Blade Battery is a less bulky lithium-iron-phosphate (LFP) battery that its Chairman Wang Chuanfu has said is safer than other alternatives in the market and will not catch fire. It has been powering BYD's best-selling battery electric cars such as the Han and Seal sedans that compete with Tesla's (TSLA.O) Model 3 in China. The South China Morning Post earlier reported BYD's Zhengzhou battery plant. Reporting by Zhang Yan and Brenda Goh; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

☆ Is the iPhone's 'Made in India' era beginning as Apple breaks with China?
▼ + stars: | 2023-02-10 | by ( Diksha Madhok | ) edition.cnn.com time to read: +9 min

Minister of Commerce and Industry Piyush Goyal said Apple was already making between 5% and 7% of its products in India. His comments come at a time when Foxconn (HNHPF), a top Apple supplier, is looking to expand its operations in India after suffering severe supply disruptions in China. For years, Apple had relied on a vast manufacturing network in China to mass produce iPhones, iPads and other popular products. China headaches mountBut the world’s most valuable company posted shockingly weak earnings this month, partly because of its recent problems in China. According to Counterpoint’s Pathak, India accounts for 16% of the global smartphone production, while China constitutes 70%.

☆ China car sales plunge 38% in January as subsidies, tax cut end
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI/BEIJING, Feb 8 (Reuters) - China's passenger car sales slumped 38% in January, reversing a 2.4% gain in the previous month, industry data showed on Wednesday, as demand weakened after a tax cut on combustion engine cars and subsidies on electric vehicles (EV) expired. Sales of new energy cars that include pure battery EVs and plug-in hybrids also fell 6.3% in January after a blistering 90% growth in 2022, the China Passenger Car Association (CPCA) said. "New energy car sales in January didn't meet our expectation, with a rare year-on-year decline in a single month sales," said Cui Dongshu, secretary general of CPCA in an online briefing on Wednesday. He said the Lunar New Year and the end of EV subsidies were among the factors leading to the decline. New energy vehicles accounted for a quarter of the total 1.3 million car sales in the month, CPCA data showed, down sharply from 35% in November 2022.

☆ China issues heavy fog warnings, some shipping suspended
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Feb 7 (Reuters) - China issued dangerous heavy fog warnings for many regions and shipping was suspended in the Qiongzhou Strait, an important economic transport hub near Hainan, according to state and local media on Tuesday. China has a four-tier, color-coded weather-warning system, with red representing the most severe warning, followed by orange, yellow and blue. Multiple areas in China's southeastern Fujian also issued alerts for heavy fog, with ferry crossings between Xiamen and Zhangzhou suspended, according to CCTV. Fog will continue in the mornings and evenings of Qiongzhou Strait until Friday, and conditions for navigation will be poor, CCTV reported citing the national weather forecast bureau. In December, one person was killed when more than 200 vehicles were involved in a pile-up on a bridge in China's central Zhengzhou city due to heavy fog.

☆ 'The worst is over': Tech investors are bullish on investing in China again
▼ + stars: | 2023-02-07 | by ( Sheila Chiang | ) www.cnbc.com time to read: +5 min

Liu Ranyang | China News Service | Getty ImagesTech investors say the worst is over as China reopens and exits its zero-Covid policy. The firm raised nearly $500 million for a new China tech fund set to close by early this year — more than earlier plans for $400 million. Tech companies see government supportInvestors are not worried of new challenges on the regulatory front. Gobi's Tang said, "I do think that they're going to do everything they can to try to spur the economic growth. "There's still a lot to catch up [in semiconductor tech] for China.

☆ Retailers in China enact rare price cuts for Apple's high-end iPhone 14 line
▼ + stars: | 2023-02-06 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

Retailers in China including JD.com and Suning have cut the price of Apple's iPhone 14 Pro and Pro Max. Major retailers in China slashed the price of Apple's high-end iPhone 14 models amid a slump in smartphone demand in the world's second-largest economy. The basic iPhone 14 Pro Max is listed for 8,199 yuan after an 800 yuan reduction. Suning, another major retailer, is selling the basic model of the iPhone 14 Pro for 7,199 after discounts and the iPhone 14 Pro Ma for 8,199. The iPhone 14 Pro starts at 7,999 yuan and the Pro Max starts at 8,999.

☆ Foxconn's January sales surge as China COVID disruption shaken off
▼ + stars: | 2023-02-05 | by ( ) www.reuters.com time to read: +2 min

Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control COVID-19 prompted thousands of workers to leave Foxconn's factory lines in Zhengzhou. "Based on market consensus for first quarter 2023, January revenue came in slightly ahead. The outlook for the first quarter will likely reach market expectation," Foxconn said without elaborating. Foxconn shares have slid 0.3% so far this year, underperforming the broader Taiwan market (.TWII) which is up 10.4%. ($1 = 29.9660 Taiwan dollars)Reporting by Ben Blanchard and Meg Shen; Additional reporting by Yimou Lee; Editing by Lincoln Feast.

☆ Foxconn January sales hit record high after production restored at world’s biggest iPhone factory
▼ + stars: | 2023-02-05 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Apple supplier Foxconn says its January monthly sales hit a record high as it bounced back from Covid-19 disruptions in China. The manufacturer attributed its performance to a strong rebound at its sprawling campus in Zhengzhou, central China. The site, which is home to the world’s biggest iPhone factory, was crippled late last year by Covid-19 restrictions and workers’ protests. The figures underscore how Foxconn’s Zhengzhou campus, also known as “iPhone city,” is roaring back to life after the massive setbacks. The headaches had led analysts to predict that Apple would likely speed up its supply chain diversification away from China.

☆ Foxconn's January sales surge COVID disruption shaken off
▼ + stars: | 2023-02-05 | by ( ) www.reuters.com time to read: 1 min

TAIPEI, Feb 5 (Reuters) - Taiwan's Foxconn (2317.TW), the world's largest contract electronics maker and major iPhone assembler for Apple Inc (AAPL.O), said on Sunday that revenue in January jumped 48.2% year-on-year, as it shook off COVID disruptions in China. Revenue in January reached a record high, with operations returning to normal and shipments increasing at the Zhengzhou campus in China, a centre for iPhone production, the company said in a statement. Production of iPhones faced disruption ahead of Christmas and January's Lunar New Year holidays, after curbs to control COVID-19 prompted thousands of workers to leave Foxconn's factory lines in Zhengzhou. Reporting by Ben Blanchard and Meg Shen; Editing by Lincoln Feast. Our Standards: The Thomson Reuters Trust Principles.

☆ A Chinese iPhone factory worker says he saw a colleague have his pay reduced for spending too much time drinking water, report says
▼ + stars: | 2023-02-04 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +3 min

A worker told Rest of World what working at a Foxconn factory where iPhones are assembled in China is like. The worker said he saw a colleague have his pay lowered for spending too long drinking. Nicknamed Hunter, the worker told Rest of World he felt he was stripped of his "rights and dignity." Hunter told Rest of World he had a strict hour-long lunch break and if he had to go to the toilets, he would need to make up for the lost time. He told Rest of World he hoped not to be back at Foxconn for the next mass production of iPhones, but he couldn't be "absolutely sure."

☆ Apple forecasts another drop in revenue, proclaims iPhone production problems over
▼ + stars: | 2023-02-03 | by ( Stephen Nellis | ) www.reuters.com time to read: +5 min

For the just-ended quarter, Apple's profits missed Wall Street expectations for the first time since 2016, dragged down by iPhone sales falling for the first time since 2020. The stock was down about 2% after Chief Financial Officer Luca Maestri said that iPhone sales were likely to improve compared with the quarter ended Dec. 31. In an interview, Cook told Reuters that the production disruptions that plagued Apple's key quarter were now over. During its fiscal first quarter ended Dec. 31, Apple faced a wave of challenges that left Wall Street expecting lower sales. Apple said iPhone sales were $65.8 billion, down 8% from the year before and the first fall since 2020.

☆ Apple's lower iPhone sales drive first profit miss since 2016
▼ + stars: | 2023-02-02 | by ( Stephen Nellis | ) www.reuters.com time to read: +5 min

Apple sales fell 5% to $117.2 billion and were down in every part of the world in the quarter. Apple Chief Executive Tim Cook told Reuters that the production disruptions that plagued Apple's key quarter were now over. "I would point out that 8% is still a very severe headwind," Cook told Reuters. On top of supply chain problems for the iPhone, Wall Street analysts had expected iPhone sales to fall this year as part of a larger pattern in which the iPhone 14 family released last year sells more slowly after two straight years of strong sales of iPhone 12 and 13 models. Apple said iPhone sales were $65.8 billion, down 8% from the year before and below analyst estimates of $68.3 billion.

☆ Apple is the only US tech giant to have avoided significant layoffs
▼ + stars: | 2023-02-01 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +4 min

CNN —In less than three months, four of the big five US tech companies have cut tens of thousands of employees combined, shattering myths about the industry’s seemingly unstoppable growth in the process. Tom Forte, a senior research analyst at DA Davison, agreed there will be staff reductions, but likely not as drastic as those at other large tech companies. How Apple avoided layoffs, so farFueled by a surge in demand for digital products earlier in the pandemic, Big Tech went on a massive hiring spree. Inflation pinched consumer and business spending, and rising interest rates evaporated the easy money tech companies had tapped into. Like other Big Tech companies, it has faced threats of antitrust action in the United States and EU.

The world's biggest public company is expected to report on Thursday that iPhone sales fell about 5% for the all-important holiday quarter, according to Refinitiv. The last time iPhone sales slipped was in the August-October period in 2020, months into the COVID-19 pandemic. Greater China, including Hong Kong, is key to Apple's fortunes, contributing roughly a fifth to annual revenue. FUNDAMENTALS** Revenue estimated to have fallen 2% in the last three months of 2022, Apple's first fiscal quarter. ** IPhone sales likely fell for first time since 2020, while services business rose 6%.

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