India’s Quiet Push to Steal More of China’s iPhone Business

[nahtanbob]

On September 26, 2024, CAICT (China Academy of Information and Communications Technology) released its latest report “2024 Global 5G Standard Essential Patents and Standard Proposals Research Report”
————CAICT is a scientific research organization directly under the Ministry of Industry and Information Technology of China. The data in this report is derived from authoritative official organizations such as the State Intellectual Property Office of China, the European Patent Office, the U.S. Patent and Trademark Office, and the International Telecommunication Union.

There isn't any any data about Apple in terms of all 5G standard essential patents. It means that Apple does not own any essential patent technology.
View attachment 67792
This is the effective global patent family share of all essential patents in the 5G communications era. It includes all essential patents for backward compatible 4G, 3G and 2G.
Chinese companies: Huawei(1), ZTE(5), Xiaomi(8), OPPO(9), Datang(10)
Companies outside China: Qualcomm(2), LG(3), Samsung(4), Ericsson(6), Nokia(7)
Huawei ranks first in the world with 12.42%. There is no Apple here.

So the conclusion is already obvious. Huawei can continue to make phones without using any of Apple's patents; Apple will not be able to make phones without Huawei's patent license.

Do you understand?

The full text of this report is linked below:-----(Chinese version only)

http://www.caict.ac.cn/kxyj/qwfb/ztbg/202409/t20240926_493920.htm

http://www.caict.ac.cn/kxyj/qwfb/ztbg/202409/P020240926566555589029.pdf

This is patents on the network not on the device side

 

[Michael]

The iPhone 16 is available. There were many bloggers who disassembled the Made in India version and found the internal workmanship to be abysmal.
You can search for the detailed video on Youtube itself. I'll post a few screenshots.


The blogger was using a professional user sample of the iPhone 16 Made in India version. Not the standard retail version.
Hopefully this is a special case. If the official sales version is still of this quality, expect big problems.

Tips for origin identification are starting to appear on Chinese social media platforms. Do not unpack the goods after receiving them. You should first check the country of origin and return it immediately if you find that it is made in India.


I'm not an Apple user. I don't usually pay special attention to Apple news. The above is for reference only.

 

[nahtanbob]

The iPhone 16 is available. There were many bloggers who disassembled the Made in India version and found the internal workmanship to be abysmal.
You can search for the detailed video on Youtube itself. I'll post a few screenshots.
View attachment 68181
View attachment 68182
The blogger was using a professional user sample of the iPhone 16 Made in India version. Not the standard retail version.
Hopefully this is a special case. If the official sales version is still of this quality, expect big problems.

Tips for origin identification are starting to appear on Chinese social media platforms. Do not unpack the goods after receiving them. You should first check the country of origin and return it immediately if you find that it is made in India.
View attachment 68183

I'm not an Apple user. I don't usually pay special attention to Apple news. The above is for reference only.

You make it sound like you are the only ones who can solder. Without help of Cupertino based Apple engineers China would never assembled iPhones.

 

[nahtanbob]

Tata iPhone component plant disrupted by fire, 10 given medical aid​

https://www.reuters.com/world/india/fire-disrupts-operations-tata-electronics-iphone-plant-india-sources-say-2024-09-28/

Production was halted and employees sent home for the day following the fire, a person with direct knowledge of the incident said earlier, describing the blaze as chemical-related.

 

[Nilgiri]

You make it sound like you are the only ones who can solder. Without help of Cupertino based Apple engineers China would never assembled iPhones.

The export numbers will speak for themselves in end.

We can find bloggers about Chinese made goods too. A dime a dozen to do.

Does it mean everything in a blog is extrapolated 100% to reality? Nowhere close.

If one knows QA/QC and six sigma costs at its tiers, one understands the E(X) % defects in end.

 

[Michael]

The export numbers will speak for themselves in end.

We can find bloggers about Chinese made goods too. A dime a dozen to do.

Does it mean everything in a blog is extrapolated 100% to reality? Nowhere close.

If one knows QA/QC and six sigma costs at its tiers, one understands the E(X) % defects in end.

This statement of mine is just a feedback based on the reality of the situation. It does not carry any other position or factor.
We all know that all cell phone manufacturers will provide prototypes to some professional users for these professional users to test their new products before officially releasing them. The feedback from the professional users will help the cell phone manufacturer to fix some problems in the official launch version.
This blogger just disassembles and analyzes based on the professional user test version, not the official launch version. I specifically stated this in my statement.

I prefer to study the business war between Apple and Huawei.
In the first few months of the Chinese market, Apple is still the champion.

On September 10, Apple and Huawei held a new product conference on the same day. iPhone 16 and HUAWEI Mate XT head-to-head competition began.

Currently, the number of pre-orders for HUAWEI Mate XT is 6,445,000, and the number of pre-orders for Apple iPhone 16 (China market) is 1,870,000. HUAWEI Mate XT is priced at CNY19,999~23,999, and Apple iPhone 16 is priced at CNY5,999~9,999.

As things stand, Huawei will be well ahead of Apple in the 2024 Q4 report. However, these are just estimated analyses. We need to deeply observe the next product delivery and use feedback. The real quality of the product will play a huge influence at this time.

A few days ago, Huawei executive Yu Chengdong mentioned the HUAWEI Mate XT in an interview. he said that in the pre-business planning, because the price of the product is too high, the production quantity planning is to provide 1 million units before the Spring Festival. But now the actual orders have far exceeded this number. They need to urgently expand production capacity.

The iPhone 16 Made in India version did have some impact on iPhone 16 sales. This is normal. These impacts mainly stem from quality issues with earlier made-in-India Apple products. These effects will change (better or worse) after the iPhone 16 is actually delivered.

In the early days of made-in-China products, there was an inherent impression that they were “cheap and of poor quality”. Even Chinese people believe that imported products are better than domestic products. We did not believe in the quality of domestic products at that time.
After many years of hard work, Chinese people's confidence in products made in China has slowly been restored. The most significant change was in the field of home appliances.

It takes a long time to change this impression. It is not a problem that can be solved by national pride. Consumers will be honest and make choices using their own wallets.

 

[nahtanbob]

This statement of mine is just a feedback based on the reality of the situation. It does not carry any other position or factor.
We all know that all cell phone manufacturers will provide prototypes to some professional users for these professional users to test their new products before officially releasing them. The feedback from the professional users will help the cell phone manufacturer to fix some problems in the official launch version.
This blogger just disassembles and analyzes based on the professional user test version, not the official launch version. I specifically stated this in my statement.

I prefer to study the business war between Apple and Huawei.
In the first few months of the Chinese market, Apple is still the champion.

On September 10, Apple and Huawei held a new product conference on the same day. iPhone 16 and HUAWEI Mate XT head-to-head competition began.

Currently, the number of pre-orders for HUAWEI Mate XT is 6,445,000, and the number of pre-orders for Apple iPhone 16 (China market) is 1,870,000. HUAWEI Mate XT is priced at CNY19,999~23,999, and Apple iPhone 16 is priced at CNY5,999~9,999.

As things stand, Huawei will be well ahead of Apple in the 2024 Q4 report. However, these are just estimated analyses. We need to deeply observe the next product delivery and use feedback. The real quality of the product will play a huge influence at this time.

A few days ago, Huawei executive Yu Chengdong mentioned the HUAWEI Mate XT in an interview. he said that in the pre-business planning, because the price of the product is too high, the production quantity planning is to provide 1 million units before the Spring Festival. But now the actual orders have far exceeded this number. They need to urgently expand production capacity.

The iPhone 16 Made in India version did have some impact on iPhone 16 sales. This is normal. These impacts mainly stem from quality issues with earlier made-in-India Apple products. These effects will change (better or worse) after the iPhone 16 is actually delivered.

In the early days of made-in-China products, there was an inherent impression that they were “cheap and of poor quality”. Even Chinese people believe that imported products are better than domestic products. We did not believe in the quality of domestic products at that time.
After many years of hard work, Chinese people's confidence in products made in China has slowly been restored. The most significant change was in the field of home appliances.

It takes a long time to change this impression. It is not a problem that can be solved by national pride. Consumers will be honest and make choices using their own wallets.

Apple has better feedback mechanisms than no-name Chinese bloggers

 

[Nilgiri]

This statement of mine is just a feedback based on the reality of the situation. It does not carry any other position or factor.
We all know that all cell phone manufacturers will provide prototypes to some professional users for these professional users to test their new products before officially releasing them. The feedback from the professional users will help the cell phone manufacturer to fix some problems in the official launch version.
This blogger just disassembles and analyzes based on the professional user test version, not the official launch version. I specifically stated this in my statement.

I prefer to study the business war between Apple and Huawei.
In the first few months of the Chinese market, Apple is still the champion.

On September 10, Apple and Huawei held a new product conference on the same day. iPhone 16 and HUAWEI Mate XT head-to-head competition began.

Currently, the number of pre-orders for HUAWEI Mate XT is 6,445,000, and the number of pre-orders for Apple iPhone 16 (China market) is 1,870,000. HUAWEI Mate XT is priced at CNY19,999~23,999, and Apple iPhone 16 is priced at CNY5,999~9,999.

As things stand, Huawei will be well ahead of Apple in the 2024 Q4 report. However, these are just estimated analyses. We need to deeply observe the next product delivery and use feedback. The real quality of the product will play a huge influence at this time.

A few days ago, Huawei executive Yu Chengdong mentioned the HUAWEI Mate XT in an interview. he said that in the pre-business planning, because the price of the product is too high, the production quantity planning is to provide 1 million units before the Spring Festival. But now the actual orders have far exceeded this number. They need to urgently expand production capacity.

The iPhone 16 Made in India version did have some impact on iPhone 16 sales. This is normal. These impacts mainly stem from quality issues with earlier made-in-India Apple products. These effects will change (better or worse) after the iPhone 16 is actually delivered.

In the early days of made-in-China products, there was an inherent impression that they were “cheap and of poor quality”. Even Chinese people believe that imported products are better than domestic products. We did not believe in the quality of domestic products at that time.
After many years of hard work, Chinese people's confidence in products made in China has slowly been restored. The most significant change was in the field of home appliances.

It takes a long time to change this impression. It is not a problem that can be solved by national pride. Consumers will be honest and make choices using their own wallets.

All I'm saying is the bulk of the exports in this category go towards:

Apple's IPhone Exports From India Have Doubled, But Component Manufacturing Needs To Pick Up - Forbes India

The US tech giant has come a long way in India, from a delayed launch of iPhones to a parallel launch. Now, to capture more market share, it needs to focus on manufacturing the components domestically

www.forbesindia.com

According to reports, 65 percent of iPhones manufactured in India are exported to the US, Europe, West Asia, and others. All of this led to Apple becoming the first individual brand to cross the $5 billion export mark from India. The country’s total mobile phone exports touched Rs 90,000 crore (10.6 billion USD) in FY23, led by iPhones.

We will see the number drop quickly and fast if Apple for some reason didn't do its QC/QA (quality control and quality assurance)....which I find highly unlikely (given the export number + customers in the first place).

I have seen blogs being unfair to Chinese goods in the past and present.... i.e Chinese export numbers simply continued and grew despite that. It just means objectively the % problems that end up existing....just reflect the pricepoint and QC/QA invested into that supply chain. Sometimes blogs also deliberately create problems in a fake way too with the product, they are not some neutral authority.

 

[nahtanbob]

All I'm saying is the bulk of the exports in this category go towards:

Apple's IPhone Exports From India Have Doubled, But Component Manufacturing Needs To Pick Up - Forbes India

The US tech giant has come a long way in India, from a delayed launch of iPhones to a parallel launch. Now, to capture more market share, it needs to focus on manufacturing the components domestically

www.forbesindia.com

According to reports, 65 percent of iPhones manufactured in India are exported to the US, Europe, West Asia, and others. All of this led to Apple becoming the first individual brand to cross the $5 billion export mark from India. The country’s total mobile phone exports touched Rs 90,000 crore (10.6 billion USD) in FY23, led by iPhones.

We will see the number drop quickly and fast if Apple for some reason didn't do its QC/QA (quality control and quality assurance)....which I find highly unlikely (given the export number + customers in the first place).

I have seen blogs being unfair to Chinese goods in the past and present.... i.e Chinese export numbers simply continued and grew despite that. It just means objectively the % problems that end up existing....just reflect the pricepoint and QC/QA invested into that supply chain. Sometimes blogs also deliberately create problems in a fake way too with the product, they are not some neutral authority.

China could not make a single iPhone or any Apple product without the legion of engineers who are sent to Shenzhen to help out

Apple's biggest issue is innovation for the price points the iPhones are being sold. That has little to do with whether factory is in China or India

For some reason a lot of technology giants have designated India for outsourcing of electronic manufacturing

Cisco to Manufacture in India as it Targets over $1 Billion

Cisco, a global technology leader, announced today that it will start manufacturing in India, a major step in the expansion of its footprint in the country.

newsroom.cisco.com

 

[Michael]

China could not make a single iPhone or any Apple product without the legion of engineers who are sent to Shenzhen to help out

Apple's biggest issue is innovation for the price points the iPhones are being sold. That has little to do with whether factory is in China or India

For some reason a lot of technology giants have designated India for outsourcing of electronic manufacturing

Cisco to Manufacture in India as it Targets over $1 Billion

Cisco, a global technology leader, announced today that it will start manufacturing in India, a major step in the expansion of its footprint in the country.

newsroom.cisco.com

One-sided disparagement or praise will not lead to ultimate victory.

There is no doubt that the rapid development of China's smartphone industry poses a great threat to Apple and Samsung.
In 2018, Huawei's global sales of cell phones were close to those of Samsung and Apple (the gap is very small), and it ranked third in the world. Other Chinese brands followed, but the sales gap was large.
In 2019, the United States began to sanction Huawei. Huawei sales plummeted.
In 2023, Apple's sales are the first in the world, Samsung is ranked second, and Xiaomi, OPPO and Transsion follow. The gap between them narrows further. Huawei is recovering, but not fully.

China smartphone market
Huawei, which was ranked No. 1 in the Chinese market in 2018, dropped out of the ranking due to the sanctions imposed by the US government on Huawei.
But also squeezed out of the ranking is Samsung. These market shares were divided by other companies, some of which flowed into Xiaomi, OPPO, and VIVO; some of which were absorbed by Huawei's spin-off Honor; and some of which flowed into Apple.
In 2023, with the “help” of U.S. Secretary of Commerce Gina Raimondo(Of course we know this is a joke.), Huawei launched the Mate 60, which marked the beginning of a new round of “Huawei-Apple War”.

September 10, 2024. the HUAWEI Mate XT and Apple iPhone 16 launch simultaneously in China. 6.445 million and 1.87 million order figures compared.

In the years that Huawei has disappeared from the market, we have seen him continue to introduce newer and more advanced technologies. For example: 5.5G, satellite calls, HarmonyOS, AI, folding screen technology, high hardness screens, and the Heath Kirin chip ..........
Meanwhile, we haven't seen much progress from Apple. --I mean after its comparison with Huawei.

We know that both Apple and Huawei invest a lot of money in R&D every year. But in the areas of core communications patents and user experience, Apple hasn't shown the public much. Since Steve Jobs passed away, we haven't gotten any big surprises in new Apple products. -- I am a fan of Steve Jobs, but not a fan of Apple now.

Judging from these phenomena, Apple products will be squeezed out of the Chinese market very soon if Apple doesn't carry out large-scale reforms. Subject to the sanctions imposed on China by the United States and Western countries, Apple's international market will not be hit too hard for the time being.

Whether the production of Apple products (the whole industrial chain) leaves China is not an important issue for China. Chinese companies have learned a lot from Apple, marketing, industrial design, precision machining, quality control (until today, I still appreciate the industrial design of Apple products) ........... This advanced knowledge has created many Chinese smartphone brands today. But times are progressing.

From the perspective of business operations, moving the factory to India is the best option for Apple. The problem is that India needs to make a lot of efforts to absorb it. I will keep watching.
I am a business designer and see things only from a business perspective. Viewing and analyzing issues with strong nationalistic sentiments can lead to huge losses for my clients.