Former Apple employees and supply chain sources revealed that travel restrictions around the world due to the outbreak of the new coronavirus coincided with Apple engineers flying to Asia to finalize the assembly of new iPhones this fall (iPhone 12), therefore, it's possible that Cupertino could delay the production of its upcoming flagship smartphones, according to a new report from Reuters.
Two previous Apple employees said that although the company will not begin mass production until the summer, they will communicate specific assembly processes with partners such as Foxconn in the first few months of each year.
Supply chain experts said that despite Apple employs Wistron and other outsourced companies to make certain iPhones, Foxconn is often responsible for producing new models because of its state-of-the-art technology.
Foxconn postponed the resumption of work at major iPhone factories in Shenzhen and Zhengzhou after the Spring Festival holiday but is expected to resume half of its production capacity in China by the end of February. The largest electronics producer said this month that an outbreak of a new coronavirus will halve the company's revenue this year.
A person familiar with the matter said that Foxconn executives who have been working remotely in Taipei since the holiday have not yet returned to mainland China on a large scale.
Apple warned investors last week that they are unlikely to meet their revenue goals for the first three months of 2020 and that the global iPhone supply will also be limited because Chinese production bases are not accelerating production as expected.
United, a major Apple customer, announced earlier this month that it would cancel all flights to mainland China until late April. At the same time, Apple also said on January 28 that it would restrict employees' travel to China.
According to people familiar with the matter, when the Spring Festival celebration ended in late January and early February, the company had begun to seriously advance the transition from prototype to mass assembly. By that time, Apple had tested many prototypes and was in the later stages of so-called engineering verification, which allowed Foxconn workers to assemble a small number of equipment and troubleshoot by engineers on both sides.
If setbacks occur at this stage, it will hesitate Apple's final decision on orders for chips and other parts, which are almost all customized for the iPhone.
Ron Keith, the founder of Supply Chain Resources Group, said that because of the huge demand, Apple can not wait for too long to choose components. Supply Chain Resources Group has partnerships with electronics makers such as Alphabet's Nest.
In March and April, Apple engineers usually work with their Foxconn counterparts to establish new assembly lines and conduct trial runs, and then make final adjustments in April and May. The purpose is to start the production line in June so that other production lines can be gradually added to increase production.
Although supply chain experts and industry insiders say that Apple still has time to maintain the annual iPhone release schedule, travel restrictions do have some negative effects. And if this situation didn't change in another month, this can be very serious in the consumer electronics cycle.
Apple declined to comment. Foxconn did not immediately respond to a request for comment.
Image Via ConceptsiPhone
Two previous Apple employees said that although the company will not begin mass production until the summer, they will communicate specific assembly processes with partners such as Foxconn in the first few months of each year.
Supply chain experts said that despite Apple employs Wistron and other outsourced companies to make certain iPhones, Foxconn is often responsible for producing new models because of its state-of-the-art technology.
Foxconn postponed the resumption of work at major iPhone factories in Shenzhen and Zhengzhou after the Spring Festival holiday but is expected to resume half of its production capacity in China by the end of February. The largest electronics producer said this month that an outbreak of a new coronavirus will halve the company's revenue this year.
A person familiar with the matter said that Foxconn executives who have been working remotely in Taipei since the holiday have not yet returned to mainland China on a large scale.
Apple warned investors last week that they are unlikely to meet their revenue goals for the first three months of 2020 and that the global iPhone supply will also be limited because Chinese production bases are not accelerating production as expected.
United, a major Apple customer, announced earlier this month that it would cancel all flights to mainland China until late April. At the same time, Apple also said on January 28 that it would restrict employees' travel to China.
According to people familiar with the matter, when the Spring Festival celebration ended in late January and early February, the company had begun to seriously advance the transition from prototype to mass assembly. By that time, Apple had tested many prototypes and was in the later stages of so-called engineering verification, which allowed Foxconn workers to assemble a small number of equipment and troubleshoot by engineers on both sides.
If setbacks occur at this stage, it will hesitate Apple's final decision on orders for chips and other parts, which are almost all customized for the iPhone.
Ron Keith, the founder of Supply Chain Resources Group, said that because of the huge demand, Apple can not wait for too long to choose components. Supply Chain Resources Group has partnerships with electronics makers such as Alphabet's Nest.
In March and April, Apple engineers usually work with their Foxconn counterparts to establish new assembly lines and conduct trial runs, and then make final adjustments in April and May. The purpose is to start the production line in June so that other production lines can be gradually added to increase production.
Although supply chain experts and industry insiders say that Apple still has time to maintain the annual iPhone release schedule, travel restrictions do have some negative effects. And if this situation didn't change in another month, this can be very serious in the consumer electronics cycle.
Apple declined to comment. Foxconn did not immediately respond to a request for comment.
Image Via ConceptsiPhone
Post a Comment