Content summary:
2, Zhengzhou Foxconn has been working hard to alleviate the impact of the new crown epidemic on iPhone14 production capacity;
3, Thanks to supply chain adjustments, epidemic on iPhone The impact of 14 delivery volume may be smaller than Apple expected;
4 and need to be wary of Apple using the epidemic to make long-term transfers of the supply chain.
Apple said in a statement on Sunday (November 16) Eastern Time that iPhone 14 will suffer significant production cuts due to the Covid-19 epidemic restrictions of its main iPhone 14 Pro and iPhone 14 Pro Max assembly plants in Zhengzhou.
Apple said in a statement that the factory operated by Foxconn has "significantly reduced production capacity." It warns that Apple will reduce shipments as a result and that customers will need longer wait times after ordering their Apple phones.
Apple also raised the possibility that it may reduce iPhone sales in the fourth quarter because it cannot produce enough products to meet demand. It had previously suggested that growth in the fourth quarter could slow.
The company said demand for affected models continues to be strong, which are priced higher than other iPhone models, starting at $999 and $1099, respectively.
JP Morgan analyst Samik Chatterjee said in a report on Sunday that due to the impact of production capacity, it will now take 31 days to receive the iPhone 14 Pro if ordered from Apple's website, which is more than ten times longer than the average 2-day delivery time of cheap iPhone models.
2. Zhengzhou Foxconn has been working hard to alleviate the impact of the new crown epidemic on the production capacity of iPhone14
Over the past week, Zhengzhou has entered the epidemic blockade mode. According to the previous production capacity arrangements, Apple produced most of the iPhones at its Foxconn factory in Zhengzhou. According to a summary of mainland media reports, the factory has been working hard to solve employees who left the factory due to the COVID-19 pandemic.
Based on the "zero epidemic" policy, the Zhengzhou Foxconn factory must operate in a "closed-loop" manner, and workers work in factories isolated from the outside world. During this period, Foxconn provided free dining benefits and hundreds of dollars in work subsidies for workers who continued to work in the factory every day, but some employees still asked to leave the factory and return to their home city to implement quarantine.
Zhengzhou is also adjusting epidemic prevention policies to reduce the impact on production and life. According to the press conference of the Zhengzhou Municipal COVID-19 Prevention and Control Command, Zhengzhou will further accurately target the risk areas to communities, communities, and buildings, and will not block the entire community without any difference due to individual epidemic ignition points. It will control the very few and let the majority go as much as possible.
3. Thanks to supply chain adjustments, the impact of the epidemic on iPhone 14 delivery volume may be smaller than Apple expected
In fact, because Foxconn is also making every effort to ensure the contract delivery of iPhone 14 models in the fight against the epidemic, and has made some capacity structural adjustments at Foxconn's global production base. Finally, the impact of the epidemic on iPhone 14 delivery volume may be smaller than Apple expected.
According to Shenzhen Guanlan Foxconn employees excerpted from the media, Shenzhen Guanlan Foxconn factory makes Apple's complete machine IDPBG business group . Some floors started to take turns to take off this week. I heard that Zhengzhou Foxconn was affected by the epidemic and transferred part of the order to produce it in Shenzhen Guanlan factory. Guanlan factory put iPhonehtml in the factory. The 114 model was transferred to India for production, and the vacant workshop was renovated, and the two high-end models,
There is also news that although among Apple's main manufacturing partners, the Zhengzhou factory is still the only factory producing the iPhone 14 Pro. But shortly after the Foxconn factory in Zhengzhou was infected with the epidemic, Foxconn in Zhengzhou had transferred some of its iPhone 14 to the Changshuo factory in Tamil Nadu, southern India. The factory hired 7,000 employees at the end of September and started making the iPhone 12 earlier this year. Changshuo usually preceded the entry-level iPhone order.
reported that all Apple's major partners Foxconn, Pegatron and Wistron have increased iPhone production in India, thanks to the willingness of Indian authorities to provide incentives for these companies.
4. Beware of Apple Highlights: Use the epidemic to make long-term transfer of supply chains
At present, Apple has transferred its supply chain from China to diversified areas, transferred part of the production of iPhones to India, and transferred the production of other products to Vietnam. Despite this, Chinese OEM is still mainly responsible for producing Apple's high-end production lines (iPhone 14 Pro & iPhone 14 Pro Max), while Indian OEM is responsible for producing Apple's low-end production lines (iPhone 14 & iPhone 14 Plus). Calculated from the total production capacity, more than 90% of Apple's iPhones still rely on China's OEM production.
What we need to pay attention to and respond to is whether Apple’s current supply chain adjustment is a temporary response to the epidemic, or a long-term transfer of the supply chain with the help of the epidemic. After all, as early as May, Apple required OEM factories to increase Apple production capacity in Vietnam, India and other places.
We also need to be vigilant about the potential demonstration role of Apple's supply chain adjustment and transfer as an indicator brand.
【Xu Sanlang】
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