Foxconn says supply chain conditions are improving despite lockdowns in China, iPhone 14 production on track

One of Apple’s major iPhone assemblers, Foxconn, recently said that the COVID-19 situation in China has not had a significant impact on its operations. In fact, the company expects an improvement in supply chain conditions by the second half of 2022, putting a rest to rumors suggesting Apple’s iPhone 14 lineup might be delayed.


Foxconn expects increased supply chain stability in the second half of 2022

According to a new report by Nikkei Asia, Foxconn’s chairman Young Liu finally had some positive news for shareholders amid the ongoing global chip shortage.

“The overall lockdown impact on Foxconn is rather limited. You can tell from our revenues in April, and May’s performance is also better than we estimated,” Liu revealed, in reference to the worsening COVID-19 situation in China and subsequent lockdowns in and around Shanghai.

“Foxconn previously forecast this year would maintain a similar level from last year, after factoring in inflation, war [in Ukraine], and other uncertainties, but now we think the full year will be better than our estimate,” he added.

The Taiwanese manufacturer recorded 486.46 billion New Taiwan dollars ($16.76 billion) in revenue in April, down just 4.1% from last month. In comparison, iPhone manufacturer Pegatron and MacBook assembler Quanta Computer experienced a dip in revenue of 35% and 40%, respectively.

With that being said, Foxconn will continue to monitor the COVID-19 situation in China and plans to enhance its closed-loop management to reduce the risks of disruptions to the supply chain. Liu said, “We think such COVID controls will continue to happen, and it is our operational focus to make sure the facilities can keep operating.”

iPhone 13 Pro

As per Foxconn’s expectations regarding supply chain improvements, consumers shouldn’t worry about Apple’s upcoming iPhone 14 lineup being delayed. This year’s lineup will feature four models: iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Pro Max.

The upcoming lineup is expected to sport a thicker design and a larger rear-camera bump. In addition, the Pro models will be powered by the next-generation A16 Bionic chip and will feature a new pill + hole-punch camera cutout. The iPhones will also offer an upgraded 48MP rear camera system.

Though supply chain conditions seem to be on the surprise, new research suggests consumer demand for smartphones is experiencing a lull in China due to COVID-19. Demand for smartphones in the country fell by more than a third in April compared to the same month last year. This could be troubling for Apple as it continues to ready the iPhone 14 lineup for launch.

About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.