China COVID Controls Makes Apple Supplier Pegatron ‘Emphasize’ Expansion Elsewhere

Logo of an Apple store is seen in Washington, US, January 27, 2022. (Reuters)
Logo of an Apple store is seen in Washington, US, January 27, 2022. (Reuters)
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China COVID Controls Makes Apple Supplier Pegatron ‘Emphasize’ Expansion Elsewhere

Logo of an Apple store is seen in Washington, US, January 27, 2022. (Reuters)
Logo of an Apple store is seen in Washington, US, January 27, 2022. (Reuters)

China's recent lockdowns to control the spread of COVID-19 have made Apple Inc iPhone assembler Pegatron Corp "emphasize" its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday.

In April, Taiwan-headquartered Pegatron suspended operations at its Shanghai and Kunshan plants in China due to strict COVID-19 protocols, impacting production and deliveries. China has since lifted those restrictions.

However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to "emphasize" its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei.

"We faced COVID controls for two months. We couldn't have assessed that in advance, so that makes me emphasize our expansions in Vietnam, India, Indonesia, and North America, to solve our labor shortage, the gap between peak and low seasons, and to increase the utilization of our production capacity."

In recent years, Pegatron has sought to expand its footprint in Southeast Asia and North America.

Chairman T.H. Tung added that their customers had "different reasons" for setting up factories in Vietnam, India and Mexico.

"But one shared factor is the ability to reduce concentration in Shanghai, Suzhou, Chongqing," Tung said, adding that recruiting staff in China has become increasingly difficult over the past seven to eight years.

Tung said that with the COVID pandemic easing globally, China coming out of its lockdowns to control the coronavirus and the electronics industry's peak season coming later in the year, the rest of 2022 should be much better for the company.

"Combining these factors, I expect the second half of the year to be better, or a lot better, than quarter two."

Taiwanese firm Foxconn, the world's largest contract electronics maker which also assembles iPhones, last month predicted more stable supply in the second half of 2022.



The iPhone 16, New AirPods and Other Highlights from Apple’s Product Showcase 

A display of the new Apple iPhone 16 models at Apple's “Glowtime” product launch event on the campus of Apple Park in Cupertino, California, USA, 09 September 2024. (EPA)
A display of the new Apple iPhone 16 models at Apple's “Glowtime” product launch event on the campus of Apple Park in Cupertino, California, USA, 09 September 2024. (EPA)
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The iPhone 16, New AirPods and Other Highlights from Apple’s Product Showcase 

A display of the new Apple iPhone 16 models at Apple's “Glowtime” product launch event on the campus of Apple Park in Cupertino, California, USA, 09 September 2024. (EPA)
A display of the new Apple iPhone 16 models at Apple's “Glowtime” product launch event on the campus of Apple Park in Cupertino, California, USA, 09 September 2024. (EPA)

Apple squarely shifted its focus toward artificial intelligence with the unveiling of its hotly anticipated iPhone 16 along with a slew of new features coming with the next update to the device’s operating system. While the new phone lineup headlined Monday's showcase, the tech giant also shared updates to its smartwatch and AirPod lineups.

Here are all the biggest announcements from Apple's “Glowtime” event.

Apple Intelligence

Apple's core artificial intelligence offerings are being packaged and billed as Apple Intelligence — first revealed at the company's developers conference in June.

These features include the ability to search for images in your library by describing them, creating custom emojis, summarizing emails and prioritizing notifications. Apple Intelligence will also upgrade Apple's virtual assistant Siri to get it to better understand requests and give it some awareness of on-screen actions taking place on the phone, hopefully making it more useful.

What sets Apple apart from what's being offered by rivals Samsung and Google? It is trying to preserve its longtime commitment to privacy by tailoring its AI so that most of its functions are processed on the device itself instead of at remote data centers. When a task requires a connection to a data center, Apple promises it will be done in a tightly controlled way that ensures no personal data is stored remotely.

Most of Apple’s AI functions will roll out as part of a free software update to iOS 18, the operating system that will power the iPhone 16 rolling out from October through December. US English will be the featured language at launch but an update enabling other languages will come out next year, according to Apple.

iPhone 16 and the camera button

The iPhone 16 Pro and Pro Max will offer slightly bigger displays and feature variants of the powerful A18 chip, which gives Apple the computing power its devices need to run AI functions.

The iPhone 16 “has been designed for Apple Intelligence from the ground up,” CEO Tim Cook said during Monday's event.

On the other end of the spectrum, the biggest physical change to the iPhone 16 lineup comes in the form of a dedicated camera-control button. The button responds to clicks and gestures, allowing users to quickly snap pictures, preview a shot or start video recording.

The button also allows owners to use something called Visual Intelligence, which will tell the iPhone 16 to automatically search on things you take photos of.

The phones will start shipping Sept. 20. The iPhone 16 will retail for $799, with the Plus model going for $899. The iPhone 16 Pro will cost $999, while the Pro Max will sell for $1,199.

Apple Watch upgrades

The Apple Watch Series 10 features a larger, and brighter, wide-angle OLED display that will allow users to better view the watch at an angle. But Apple focused much of its presentation on the device's ability to detect signs of sleep apnea.

The new device is also being offered in a titanium finish for the first time, joining a longtime trend in the watch industry of offering a tougher, more lightweight, and perceived higher-quality, alternative to traditional materials.

The Series 10 watch starts at $399 and will be available on Sept. 20.

AirPods lean toward being a listening device

The new AirPods 4 series will come with an upgraded chip for better audio quality, and will feature more active noise cancellation.

If you frequently lose your ear buds, the new AirPods will also play a sound when you locate them through the Find My app.

In a medically focused update to the AirPods Pro 2, Apple said it will upgrade the devices so they can act as an over-the-counter hearing aid. A free software update will provide the upgrade and also include options to help protect hearing and the ability to administer a clinical-grade hearing test.

The AirPod 4 model costs $129, while the version with active noise cancelling will cost $179. They both ship on Sept. 20.