Fortune of iPhone Contract Manufacturers Is Growing ?

In 2018, Apple spent $60 billion with 9,000 American component suppliers and companies, an increase of more than 10 percent from the year before, supporting more than 450,000 jobs.

The touch sensitive glass for iPhone and iPad is made by Corning at a 65-year-old facility in Harrodsburg, Kentucky. Cincinnati Test Systems in Ohio designed a first-of-its-kind equipment to ensure iPhone is water resistant. And Broadcom in Fort Collins, Colorado, Qorvo in Hillsboro, Oregon and Skyworks in Woburn, Massachusetts, are all making wireless communication hardware that enables global connectivity.

Apple already has its budget-friendly iPhone SE model produced in India by manufacturing partner Wistron. Foxconn, according to this and other reports, could move production of the higher-end iPhones, iPhone XS, iPhone XS Max, and iPhone XR, to India, as per the report.

* Apple’s contract manufacturers are suing Qualcomm similarly, for charging too much for its IP.

* Qualcomm is suing Apple’s contract manufacturers for withholding payments for the use of its IP

* Qualcomm is suing Apple for alleged tortious interference between Qualcomm and the contract manufacturers.

Legal betel among Apple and QUALCOMM has come to an end and both have announced that they have dropped all their legal cases and signed a settlement agreement , Apple has also agreed to pay some amount to Qualcomm. However, the payment amount is not revealed - by neither of the companies. Qualcomm expressed that the payment amount would help its earnings per share may increase by $2.

The companies have said that, besides dropping all litigation cases, they also have signed a multi-year contract to continue business with each other. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

This means Apple will, once again, buy chipsets from the San Diego-based chipset maker. This development could spell bad news for Intel .

There are various contract manufactures are worth billions of US$.

Foxconn clocking the revenue of $152B

Foxconn,Taiwan-based ODM, is the world’s biggest provider of electronics manufacturing, employing 250,000 worldwide (as of 2018), with manufacturing sites in Taipei, Suzhou, Mexico City, Madrid, Cleveland, and more. Most of its manufacturing is done in China.

Foxconn was founded by CEO Terry Gou back in 1974, with the stated goal of “providing low cost mechanical and electrical parts to drive down the overall cost of electronics worldwide

Wistron, $29B revenue

Wistron,Taiwan-based manufacturer of computer and consumer electronics products. Wistron got its start as the manufacturing branch of Acer. Its lines of business include notebook and desktop PCs, server and storage systems, handheld devices, and various networking and communication products, but it’s best known as one of the world’s largest manufacturer of notebook computers. Wistron is a publicly traded company that, as of 2018, employs 83,000 people worldwide, in manufacturing and support centers across China, Malaysia, Mexico, the Czech Republic, and the United States.

Pegatron, $44B

Another contract manufacturing company from Taiwan, Pegatron,. Pegatron began its journey as the production arm of ASUSTek Computer (also known as ASUS), spinning off in 2008. Pegatron manufactures the desktop and notebook PCs, wireless systems, motherboards, game consoles, smartphones, and TVs, and boasts both Apple and HP as its biggest customers. The iPhone 4 and iPhone 5c were both manufactured by Pegatron. As of 2018, Pegatron employs roughly 90,000 people worldwide, in Taiwan, the Czech Republic, China, Mexico, Japan, and the United States.

Compal, $32B revenue

The fourth company again from Taiwan, Compal and employs roughly 64,000 people. It was founded in 1984 and is known primarily for manufacturing notebooks, mobile devices, connected devices, liquid crystal displays, and health care products. Compal is responsible for the manufacturing of many products you may have used at some point-Amazon Alexa, Dell and Lenovo PCs, Apple iPads, HTC, and Sony smartphones. The company’s main manufacturing plant is in China, and, in addition to its headquarters in Taipei, it has offices across South Korea, the UK, the United States, and China.

All four contract manufacturing companies and all top 4 iPhone smartphone ODMs are very large and sophisticated companies, driving $260B in revenue, are based in Taiwan, do most of their manufacturing in China, employing half a million people. Inputs are taken from -Forbes.