Foxconn hints at iPhone 13 component shortages; new camera assembly process

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Foxconn’s Q3 forecast indicates that there may be shortages in iPhone 13 components. This is after Apple had earlier warned that supply issues with iPads and Macs could affect iPhone production.

According to reports, the company has a new way to produce iPhone cameras to cut costs.

Background

Apple claimed that iPhone production was unaffected by the April event but warned that it would in July.

Apple executives spoke with investors during a conference call. According to the executives, although the impact of the lack of chips in the third quarter was lower than anticipated, it would have a greater impact on the fourth quarter. This will have an impact on iPhone production.

Foxconn cautioned in May that some chips could take up to one year before they are ready for production.

Earnings hint at iPhone 13 component shortages

Foxconn reported strong earnings for Q2, but Reuters stated that Foxconn expects a modest growth rate of 3-15% in its current quarter. As Apple prepares for fall sales, this is a busy time for iPhone production.

Foxconn, the company that makes Apple’s iPhones reported a 30% consensus-beatable quarterly profit increase on Thursday. It warned, however, that it would need to wait and see if the worsening COVID-19 crises in Asia would affect its supply chain.

David Huang, Chief Financial officer, said that the demand for smartphones was the main driver of the record-breaking net profits at the Taiwanese company. He spoke about the results […]. for the second quarter. He spoke on conference call.

Chairman Liu Young-way stated that the forecasts were based upon the current pandemic.

He stated that the “epidemic situation” in Asia is getting worse. This should be closely monitored in order to determine if it is affecting all supply chains.

Foxconn’s projections show how complicated the current situation is.

Apple plans to make 90M iPhone 13 units this fiscal year, according to reports. This is 20% more than what was available for the iPhone 12.

New iPhone camera assembly process

The Elec also reports that Foxconn will use a new method for camera assembly to reduce costs.

Apple bought pre-assembled triple camera module modules, double- and three-camera modules from O’Film and Sharp up to last year.

The company currently buys camera modules individually and outsources assembly for Foxconn. This is done to reduce costs.

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