{"text":[[{"start":7.85,"text":"Apple’s incoming chief executive is set to inherit a series of decisions over manufacturing, pricing and global trade that mark a break from the business model that underpinned its growth under Tim Cook."}],[{"start":21,"text":"Supply chain experts, industry executives and analysts said John Ternus would have to decide how far and how quickly to shift iPhone production beyond China, manage growing pressure from Washington to invest in US manufacturing, and respond to surging memory costs that threaten to squeeze margins or push up prices."}],[{"start":40.75,"text":"Ternus will take the helm in September, as Apple contends with ongoing US-China trade tensions and a sharp shift in the semiconductor market, where competition from artificial intelligence groups has upended the balance of power with key suppliers."}],[{"start":55.9,"text":"Apple will report earnings for the quarter to the end of March on Thursday, with analysts seeking details on how rising costs are squeezing margins."}],[{"start":63.9,"text":"These pressures come as Apple reconsiders where it builds its products, how it secures components and when it launches new devices — decisions that will reshape its business in the years ahead."}],[{"start":75.85,"text":"“US investment will be one of the critical drivers of Apple’s strategy over the coming years,” said Samik Chatterjee at JPMorgan. “For John Ternus, the question is: how do I position the company to be on the right side of both Washington and Beijing?”"}],[{"start":91.39999999999999,"text":"That issue is becoming more urgent as Apple accelerates efforts to expand iPhone production in India and the US, as it remains heavily reliant on Chinese suppliers."}],[{"start":102.44999999999999,"text":"US President Donald Trump’s trade war with Beijing last year prompted Cook to increase efforts to shift iPhone assembly to facilities in India operated by the likes of Tata and Foxconn, seeking to source the entire US supply of iPhones from there. "}],[{"start":117.14999999999999,"text":"The company now assembles around 25 per cent of iPhones in India. according to International Data Corporation estimates. “This is quite remarkable for Apple . . . considering that it took a relatively short period of time to build capacity,” said the IDC’s Francisco Jeronimo."}],[{"start":132.85,"text":"While Cook appears to have convinced the Trump administration that shifting iPhone assembly to the US is not feasible, he has bound his successor to a pledge to spend hundreds of billions of dollars on US manufacturing over the coming three years."}],[{"start":145.79999999999998,"text":"The first wave of investment has been focused on semiconductors from companies like TSMC in Arizona and Texas Instruments and GlobalWafers in Texas. This has yet to meaningfully shift Apple’s reliance on China."}],[{"start":158.1,"text":"“A lot of the diversification away from China has really been on the final step” of assembling the iPhone, said Mohammad Ahmad, chief executive of supply chain intelligence platform Z2DATA. “Most of the same upstream Chinese suppliers . . . are still there.” "}],[{"start":173.75,"text":"Apple’s supply chain issues are most acute in memory, where its buying power is being challenged by a surge in demand from AI groups."}],[{"start":182.75,"text":"Apple, which produces roughly 250mn iPhones a year, has long been one of the biggest global buyers of memory."}],[{"start":190.3,"text":"Demand from AI infrastructure players such as Nvidia is now outstripping that of consumer electronics makers in the race to secure supply from a small number of producers — chiefly South Korea’s Samsung and SK Hynix, and Micron in the US. "}],[{"start":205.3,"text":"“Apple has gone from being the biggest player that essentially could dictate terms and conditions, to essentially having to deal with competitors,” said one top memory industry executive."}],[{"start":215.55,"text":"The biggest cloud companies are now making large upfront payments worth billions of dollars to secure capacity, this person said — a break from past practice where buyers first committed to volumes and negotiated prices later. "}],[{"start":229.8,"text":"Price surges mean that memory is on course to go from a 10 per cent share of the cost materials for the iPhone to as much as a 45 per cent by 2027, according to JPMorgan analysis. "}],[{"start":243.10000000000002,"text":"As it seeks to better manage seasonal surges in demand, Apple is planning to stagger the launch of its lower-priced iPhone 18 model into spring 2027 rather than releasing the full line-up in its usual autumn window, industry insiders said. "}],[{"start":258.55,"text":"The new iPhone 18 family — which is expected to include a new foldable device — will be unveiled just weeks after Ternus takes over."}],[{"start":267.3,"text":"Ternus inherits a thriving iPhone business. According to Counterpoint Research, global smartphone chip shipments fell 8 per cent in the first quarter of the year as constrained memory supply weighed on the sector. Yet Apple and Samsung’s chip shipments continued to grow."}],[{"start":282.8,"text":"But he may need to decide how long to retain prices to please consumers while hitting profit margins, especially in countries such as India and China where it faces fierce competition from local smartphone makers. "}],[{"start":296.1,"text":"“By the time September rolls around, Apple has two choices: one, they reprice [products] higher, or two, they say ‘let’s go ahead and gun for market share,’” said Wamsi Mohan, senior analyst at Bank of America. “There is a decent chance they will gun for market share.”"}],[{"start":312.3,"text":"With outgoing chief Cook poised to become the first “executive” chair of Apple’s board in September — taking a direct role in the company’s day-to-day operations — he is expected to continue to influence the supply chain he spent decades building."}],[{"start":326.25,"text":"“It’s actually two people leading the charge in some ways,” Mohan said. “It’s a departure from the way that things have been managed in the past.” "}],[{"start":341.15,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777461664_9159.mp3"}