Despite completing enormous numbers of iPhone orders, Foxconn has recently had some issues at its Zhengzhou factory. Due to supply chain interruptions and continuous demonstrations, Apple has lost out on millions of sales of the iPhone 14 Pro and iPhone 14 Pro Max. Foxconn may not be the only assembler of the iPhone 15 Pro and iPhone 15 Ultra models in 2023 despite the fact that certain occurrences are beyond the control of many businesses.
According to analyst Ming-Chi Kuo, Foxconn may miss out on exclusive orders for the premium iPhone 15 range, and Apple may lose up to 20 million shipments of the iPhone 14 Pro and iPhone 14 Pro Max models in the fourth quarter of this year.
In addition to facing the challenge of lower-than-expected iPhone shipments/revenue in 4Q22, it will also be difficult for Hon Hai to continue to be the exclusive assembler of the iPhone 15 Pro series because Apple wants to diversify supply risks.”
Given that Foxconn’s main iPhone assembly factory in China had experienced productivity halts for weeks prior to the reported decision by Apple, this news was not unexpected. First, there had been an increase in COVID-19 instances, and the additional precautions had not gone down well with the staff, who were forced to walk out and begin rioting nearby
In any event, Apple is working to reduce further risk, so Pegatron and Luxshare are probably going to hire more people and enhance their own assembly lines to accommodate more orders for the iPhone 15 Pro and iPhone 15 Ultra. The IT giant has also moved manufacturing from China to countries like Vietnam and India.