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Monday, 5 August 2019

Kuo: iPhone With Fingerprint-Sensing Display and Face ID Coming in 2021

Apple will launch an iPhone equipped with both Face ID and an on-display fingerprint sensor in 2021, according to a new investor note by Apple analyst Ming-Chi Kuo and obtained by MacRumors.

Kuo's prediction is based on Apple's patents related to fingerprint on display (FOD) and the continued use of the technology in Android smartphones, which together suggest to him that Apple will opt to bring fingerprint scanning back to its smartphone screens.

In terms of technology, we predict that four critical technical issues of FOD will significantly improve in 12–18 months, including module thickness, sensing area, power consumption, and lamination yield rate. Therefore, we believe that Apple will launch the new iPhone equipped with both Face ID and FOD to enhance security and convenience thanks to the multi-biometrics.

Apple has effaced fingerprint recognition entirely in its flagship smartphone lineup, which includes the iPhone XS, iPhone XS Max, and LCD-based iPhone XR. Chinese mobile vendors meanwhile have gone in the opposite direction and extended the adoption of in-display fingerprint sensing technology from their premium smartphones to mid-range models, where they've proved just as popular.

Apple was widely rumored to be attempting to integrate Touch ID under the display on 2017's iPhone X, but the company ditched any form of fingerprint scanning after hitting "early line of sight" with Face ID. However, Kuo argues that Face ID and FOD technologies are "complementary, not competitive," because multi-biometrics would offer authentication processes in circumstances where one or the other was inconvenient to use or simply unavailable.

Kuo believes that GIS and Qualcomm will benefit from iPhone's adoption of FOD, with the former providing the "large-area sensing ultrasonic" technology and the latter supplying the ultrasonic FOD module and lamination. Kuo also argues that the likelihood of FOD in iPhones will increase if Apple Watch supports a biometric function in the future.

Last month, Chinese media sources claimed Apple intends to launch a new iPhone for the budget-conscious Chinese market that features an under-display fingerprint sensor. However, those reports said the fingerprint scanning would replace rather than augment Face ID technology, which was deemed too expensive.

Barclays analysts also recently claimed that 2020 model iPhones will have acoustic fingerprint technology that could allow for full-screen Touch ID, following meetings with suppliers in Apple's Asian supply chain.

Before these reports, the consensus was that Apple is done with Touch ID in smartphones, despite having explored various in-display fingerprint scanner solutions in the past, including fingerprint sensing MicroLED displays. However, Touch ID has found a new lease of life on laptop keyboards, specifically in Apple's MacBook Pro range and the MacBook Air.

Tags: Ming-Chi Kuo, Touch ID

This article, "Kuo: iPhone With Fingerprint-Sensing Display and Face ID Coming in 2021" first appeared on MacRumors.com

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Kuo: Apple Likely to Absorb Any US Tariff Cost Increases on iPhone, iPad, and Mac

Apple's domestic pricing and shipment forecasts aren't likely to be impacted by U.S. tariffs thanks to "proper preparations" made by the tech giant, according to a new investor note by Apple analyst Ming-Chi Kuo and obtained by MacRumors.

Financial markets were rattled last week by President Donald Trump's surprise announcement of 10 percent tariffs on $300 billion of Chinese imports, effective September 1, in retaliation for moves by the Chinese government.

It's still unclear if Apple's products will come under the tariffs on toys, games, and consumer electronics, but if they do, Kuo believes Apple will absorb most of the additional costs in the mid-short term while increasing its non-Chinese production locations to avoid rising costs in the long run.

In the mid-short term, if Apple absorbs most of the additional costs due to tariffs, there will be a negative impact on its profits from its hardware business, but the company will reap benefits in its brand image and relationships with suppliers. We also believe that the negative impact on Apple are limited and temporary because the profit from service business is growing, and non-Chinese production locations will gradually increase.

Apple has been expanding production in India and Vietnam as part of a strategy to diversify product manufacturing beyond China. Kuo thinks Apple's non-Chinese production locations could meet most of the demand from the U.S. market after two years. Specifically he believes iPhone, iPad, and Apple Watch manufacturing could meet demand as early as next year, but adequate Mac production outside of China won't be achieved before 2021.

The predictions stand in contrast to recent comments made by Apple CEO Tim Cook during his July earnings call, in which he was asked about Apple potentially moving out of China. Cook responded: "There's been a lot of speculation about this, [but] I wouldn't put much stock in it. Parts come from everywhere, including the U.S. We currently make the Mac Pro in the US and would like to continue that."

Earlier last month, Apple asked for a U.S. import tariff exemption on parts for the new Mac Pro, which President Trump said would be denied.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tag: Ming-Chi Kuo

This article, "Kuo: Apple Likely to Absorb Any US Tariff Cost Increases on iPhone, iPad, and Mac" first appeared on MacRumors.com

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Sunday, 4 August 2019

Apple Predicted to Absorb Cost of New Tariffs

Apple will likely absorb the cost of any new tariffs imposed on Chinese imports, according to a new report from TF International Securities analyst Ming-Chi Kuo.

Last week, President Trump announced plans to slap a 10% tariff on another $300 billion worth of Chinese goods after the country backed out of a trade deal prior to signing.

"Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal", tweeted Trump. "We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%"

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