TAIPEI – According to Nikkei Asia, the development of at least one of Apple’s new flagship iPhones for this year has slipped behind schedule due to disruptions caused by China’s month-long COVID lockdowns.
According to multiple sources with direct knowledge of the situation, Apple has instructed suppliers to accelerate product development efforts in order to make up for a lost time, which, in the worst-case scenario, could impact the manufacturing schedule and initial production volumes of the new phones.
Lockdowns in and around Shanghai began in late March as part of China’s rigorous zero-COVID policy, and the impact on supply chains has remained even after restrictions were eased.
“It is difficult to make up for a lost time. “Apple and its suppliers are working around the clock to accelerate development,” claimed an Apple supplier executive, adding that the pace of reopening in Shanghai is “very slow.”
Apple has previously warned that the Chinese lockdowns have disrupted current model production and potentially cost the company up to $8 billion in revenue this quarter.
This year, the business is planning four new iPhone models, provisionally dubbed the iPhone 14, 14 Pro, 14 Max, and 14 Pro Max. The iPhone 14 and Pro models will have 6.1-inch displays, while the Max and Pro Max models would have 6.7-inch displays.
The iPhone 14 and Pro models will have 6.1-inch displays, while the Max and Pro Max models would have 6.7-inch displays. According to Nikkei Asia, Apple will drop the 5.4-inch iPhone mini range this year.
Foxconn and Pegatron, two key iPhone assemblers, are in charge of a process known as new product introduction, or NPI. During this stage, Apple and its suppliers plan the manufacturing process for turning their latest concepts into mass-produced goods. NPI is followed by a number of verification processes that must be completed on time to meet Apple’s planned scheduling for mass production, which begins around the end of August each year.
Although Luxshare Precision Industry is not responsible for the NPI of new iPhones, it has received orders to make two of the four models this year, according to Nikkei Asia.
Due to the COVID lockdowns, Pegatron’s iPhone assembly plants in Shanghai and Kunshan – the company’s main centre for Apple-related operations – had to go on sabbatical for several weeks. On May 16, its Shanghai factory was granted authorization to begin operations under closed-loop management.
Apple had thought that the development of the new iPhones would go easily this year, given that the COVID situation in China appeared to be under control and suppliers were used to working in the face of stringent coronavirus preventive measures.
According to the people, Apple was taken off guard by the unexpected installation of severe containment restrictions following a sprinkling of confirmed cases in the country, followed by monthlong lockdowns in Apple’s most significant electronics clusters.
According to individuals briefed on the topic, the four new phones are currently in the engineering verification test, or EVT, stage of development. Suppliers develop the mechanical parts and production flow for the new iPhones at this stage, as well as create bills of materials (BOM) to calculate manufacturing costs. However, because to Shanghai lockdowns, one of the models is around three weeks behind schedule. On May 17, China’s largest city announced that it has achieved “zero COVID” status. Shanghai took six weeks to get there.
By the end of June, all new iPhone models should have completed the EVT and moved on to the verification step. This gives you enough time to prepare everything for mass production by the end of August or the first week of September.
“If the development process can be accelerated and progressed to the next stage around the end of June or beginning of July, it should still be possible to reach the mass production date of early September,” according to another individual familiar with the situation. “However, it truly relies on how quickly the process can accelerate.”
According to Eddie Han, an analyst with Isaiah Research, persisting constraints are a barrier to resuming development.
