Apple iPhone production may be impacted by global chip shortages: Foxconn

On March 31,  Apple supplier Foxconn announced due to global chip shortages, shipments are expected to decrease by 10%. Foxconn chairman Liu Yangwei said in an earnings conference call that Foxconn is “cautiously optimistic” about the outlook for the rest of the year.

Foxconn is responsible for most of the assembly of Apple’s iPhone models and also cooperates with other companies like Google and Microsoft. Although there is no specific mention of Apple, it is Apple’s main supplier, which may indicate that continued chip shortages will eventually affect Apple.

Although Foxconn stated that it “has a rather limited impact on orders received a long time ago.” Foxconn expects the shortage will continue into the second quarter of 2022. Apple’s resources are actually much better than many small companies plagued by chip shortages, but as the chip problems continue.

Apple may also have trouble finding suppliers for devices that are about to go on the market. The continuing chip shortage is caused by supply chain issues arising from the global new crown epidemic and weather-related events. During the epidemic, people’s demand for purchasing equipment for home life/office surged, leading to price increases, but chip production capacity did not keep up with this standard.

Although the chip manufacturer is already operating at full capacity. And due to limited manufacturing capacity, chip makers focus on high-end chips for smartphones and game consoles, rather than on cheaper, more advanced, and lower-profit chips for everyday equipment such as cars. So far, the auto industry has suffered the most. Manufacturers like General Motors and Ford have to cut production, but the development of large technology companies may also be affected.

(Via)