iPhone 14 Mass Production, Shipment Schedule Unaffected by Geopolitics: Ming-Chi Kuo

APPLE

iPhone 14 mass production and shipment schedule are unaffected by the ongoing tension between China and Taiwan, analyst Ming-Chi Kuo has claimed. He refuted reports that claimed that Apple’s September launch event may be postponed due to delay in iPhone 14 shipments. The delay was anticipated after China reportedly started strictly enforcing a rule that Taiwanese-made parts must be labelled correctly. Apple outsources the chip manufacturing to Taiwan Semiconductor Manufacturing Company Limited (TSMC) and China is the most important hub of worldwide iPhone shipments.

Kuo said his survey indicates that there are currently no impacts on the supply chain of the iPhone 14 models. Reports suggested delay in iPhone shipments due to geopolitical tensions between China and Taiwan that reportedly escalated after US House of Representatives Speaker Nancy Pelosi and a congressional delegation’s visited Taiwan. The TSMC-made Apple chips and other parts come from Taiwan to China, which is an important hub for worldwide shipments.

It was reported that under the long-standing rule, Taiwan-made parts and components must be labelled as made either in “Taiwan, China” or “Chinese Taipei”. Reports suggested that any shipment with the phrase “Made in Taiwan” violates this rule and it may be held as well as checked by Chinese customs. A fine of up to CNY 4,000 (roughly Rs. 47,000) for violating the rule may be imposed. It may be possible that the shipment may be rejected causing delay in shipments.

Recently, a report suggested that Apple has asked its suppliers to increase shipments of iPhone 14 models from 90 million to 95 million. The company’s major supplier Foxconn is said to have hiked its recruitment bonus for iPhone workers as the supplier strives to keep pace with demand for the upcoming models.

Apple’s iPhone 14 series with four models —iPhone 14, iPhone 14 Pro, iPhone 14 Max, and iPhone 14 Pro Max— is reported to go official sometime in September. Apple suffered shipment delays due to component shortage caused by COVID-19 lockdowns in China and most recently by the Ukraine-Russia tension.


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