While the global health pandemic may seem to be receding, we’re not out of the woods yet, and neither is Apple when it comes to keeping things moving in its supply chain.
Amid another wave of COVID-19 in China, Apple vendors are forced to shut down again, slowing things down when they should be preparing to start producing the iPhone 14 line this year.
According to Nikkei Asia, at least one of Apple’s new flagship iPhones has been delayed this year. While Apple vendors are “working all day” to keep things on track, sources say that may not be enough.
Although Nikkei did not say which iPhone 14 model would be affected by this, Haitong International Securities analyst Jeff Pu points to the new entry on Apple’s list: the 6.7-inch iPhone 14 Max non-professional who is expected to replace the youngest. 5.4-inch iPhone 13 mini on the line.
According to Pu, the weak link in Apple’s supply chain is Pegatron, which had to shut down production altogether due to recent blockages. As a result of its new strict zero-tolerance policy COVID, aggressive blockades began in and around Shanghai in March, triggering a chain of events that persists although the government has begun to ease restrictions.
During its second-quarter earnings call in 2022, Apple sincerely told investors that ongoing blockades could cost up to $ 8 billion in third-quarter revenue.
Apple’s two largest iPhone assemblers, Foxconn and Pegatron, are in the development stage of the Engineering Verification Test (EVT), which involves planning the manufacturing process to prepare for the mass production. Despite this,
Pegatron’s iPhone assembly plants in Shanghai and Kunshan were forced to close for several weeks due to blockages. Its Shanghai plant only received permission to resume operations on May 16; however, sources say it is not progressing well. Although the plant is open, there are still “many restrictions on living and traveling in the greater Shanghai area.”
Delayed with the schedule
Under normal circumstances, the new iPhone models complete the EVT stage and move on to final verification in late June. It is a tight schedule that ensures that mass production is ready to start by the end of August at the latest. While analysts believe it is still possible to get things back on track, they are divided on whether this will happen.
Everyone seems to agree that the iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max are scheduled to begin mass production in early August, but the iPhone 14 Max will not be ready until three weeks after.
This does not necessarily mean that it will be sent later than the rest and it will almost certainly not cause Apple to delay its announcement. It may be harder to get your hands on one.
However, although veteran Apple analyst Ming-Chi Kuo has confirmed that the iPhone 14 Max is actually lagging behind, he disagrees with Pu’s assessment of the situation.
(1/2) My latest channel checks suggest that Apple has not changed the shipping plan for iPhone 14 models since the Shanghai lock. The iPhone 14 Max is behind, but it is still under control, and vendors can work overtime to keep up with the calendar.— 郭明 錤 (Ming-Chi Kuo) (@mingchikuo) May 26, 2022
According to Kuo sources, Apple has not changed its plans for any model of iPhone 14, at least not yet. Kuo believes Apple’s schedule is still “under control” and that suppliers will catch up and deliver the new 6.7-inch model on time.
[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]