Apple’s largest iPhone supplier in China claims that the supply chain situation in China is stabilizing and has raised its forecast appropriately.
Foxconn has boosted its estimates for the current quarter and the rest of the year, according to the Nikkei Asia. In spite of the zero-COVID regulations in Shanghai that have hampered production, Chairman Young Liu stated that the overall impact on Foxconn of the Chinese lockdown measures had been “very low.” He also stated that April revenues and May performance were “better than we projected.”
He said, “We previously anticipated that this year we would maintain a comparable level from last year, after factoring in inflation, war [in Ukraine] and other risks, but now we think the full year will be better than our projection.” Closed-loop industrial systems, according to Liu, prohibit workers from moving in and out of factory campuses, therefore reducing the spread of illnesses. According to Liu, COVID controls will be maintained, and efforts will be made to ensure that the factories continue to operate.
Apple will be happy to hear this ahead of the upcoming release of the iPhone 14 later this year. Apple’s next-generation iPhone has been rumoured to be experiencing production delays, which could lead to a shortage of the device when it goes on sale. Because of the difficulties facing the smartphone industry, it was claimed last week that Apple aims to produce a “conservative” 220 million iPhones this year.
While the iPhone 14 Max is behind schedule, Ming-Chi Kuo believes that the decline in global smartphone demand is a bigger threat to Apple. This is because China’s lockdown measures and the conflict in Ukraine are hurting the worldwide smartphone market, which is hurting Apple.
Apple is likely to improve on the iPhone 13 by deleting the notch in its ‘Pro’ iPhone models, as well as by adding some substantial camera improvements and a new chipset to some versions. In the future, the iPhone “min” will be replaced by the iPhone “Max,” a larger iPhone that does not include the “Pro” capabilities of the more expensive models.