Apple has told its suppliers to speed up iPhone development after China’s strict Covid-19 lockdowns hampered the schedule for at least one of the new phones, a report said.
Widespread Chinese lockdowns have begun to exact a toll on global supply chains. Even Apple has been unable to avoid the ructions.
Apple is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units as prolonged chip shortages hit its flagship product.
As Apple plots a foray into the car market, it could adopt a similar strategy to the iPhone – working with a lesser known contract manufacturer – after talks with some brand name car makers stalled.
Apple has suspended new business with key supplier Pegatron after discovering labour violations at a student workers’ programme, taking strong action to clean up its Chinese-focused production chain.
Taiwan-based electronics manufacturers Foxconn and Pegatron are among companies eyeing new factories in Mexico, people with direct knowledge of the matter said, as the US-China trade war intensifies.
The decades-old supply chain is starting to split in two: one beyond China’s borders that serves American concerns, and another within the world’s most populous country that caters to local consumers.
Apple has told Foxconn and Pegatron to halt plans for additional production lines dedicated to iPhone Xr, the Nikkei reports, citing unidentified people familiar with the matter.