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Apple asks suppliers to ramp up iPhone 17 production after strong demand

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Apple has instructed suppliers to increase production of the entry-level iPhone 17 by at least 30%, after stronger-than-expected pre-orders last weekend, according to The Information. The move indicates that more consumers are opting for the $799 standard model over the premium Pro versions, which start at $1,099.

Apple reportedly asked Luxshare Precision, one of its two main Chinese assemblers alongside Foxconn, to boost daily output of the iPhone 17 by about 40%. The company has not commented on the report.

The surge in demand for the lower-cost iPhone comes as Apple seeks to revive growth in its flagship product line. The new lineup includes the thinner iPhone Air, part of Apple’s effort to lure buyers in a sluggish upgrade cycle. Notably, the iPhone 17 incorporates screen and camera upgrades once exclusive to the Pro models, narrowing the performance gap with higher-priced versions.

Analysts say the trend highlights growing price sensitivity among consumers, particularly in China and other key markets. While strong sales of the entry model may help Apple protect its market share, they could also pressure profit margins, as buyers shift away from Apple’s traditionally higher-margin Pro devices.

Microsoft expands Wisconsin AI data center investment to $7 billion

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Microsoft announced plans to build a second major artificial intelligence data center in Wisconsin, raising its total investment in the state to more than $7 billion. The new $4 billion facility will join a $3.3 billion data center already under construction in Mount Pleasant, Racine County, first unveiled last year.

The initial data center is expected to open in 2026 and employ about 500 people, while the addition of the second will expand staffing to around 800. Microsoft says the combined site will eventually host the world’s most powerful AI supercomputer, linking together hundreds of thousands of Nvidia chips.

The development comes on land once earmarked for Foxconn’s highly publicized $10 billion factory, a project dramatically scaled back after initial political fanfare during Donald Trump’s presidency. When President Joe Biden attended Microsoft’s first announcement last year, he highlighted Foxconn’s retreat as a cautionary tale while framing Microsoft’s plan as a sign of renewed investment.

Microsoft said it will pre-pay for electrical infrastructure to avoid burdening local customers with higher power bills and will use Wisconsin’s cold climate for energy-efficient cooling. Annual water consumption will be capped at roughly the level of an average restaurant. To offset its energy use, the company will also build solar power elsewhere in Wisconsin, though Microsoft President Brad Smith noted new fossil fuel generation—specifically liquefied natural gas—will still be part of the mix.

While the 800 permanent jobs fall short of the thousands promised by Foxconn, Smith emphasized the importance of ongoing skilled labor positions, including pipefitters and electricians, needed for both construction and long-term maintenance.

India downplays Foxconn disruption from Chinese staff pullback

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India’s government said Foxconn’s operations in the country remain largely unaffected despite the company recalling some of its Chinese engineers and technicians in recent months.

S. Krishnan, secretary at the Ministry of Electronics and Information Technology, told reporters in Taipei that Foxconn had managed the adjustment smoothly, relying on staff from Taiwan, the U.S., and local Indian workers to keep production stable. “Operations did not really suffer significantly,” he said.

Foxconn, Apple’s top iPhone assembler, has been expanding in India as part of efforts to diversify production away from China, particularly amid the risk of triple-digit U.S. tariffs on Chinese goods. The company already runs a plant near Chennai and is building another near Bengaluru.

Bloomberg previously reported that hundreds of Chinese employees were asked to return home, though the reasons remain unclear. Both Foxconn and Apple declined to comment.

The backdrop includes lingering India-China tensions since their 2020 border clash, which led New Delhi to tighten restrictions on Chinese firms and ban dozens of Chinese apps. Relations have warmed somewhat, with Indian Prime Minister Narendra Modi meeting President Xi Jinping last month in Beijing for the first time in seven years.

Krishnan emphasized that Foxconn is “committed to see through all the investments in India,” noting its expansion has been “very significant.”