Apple Supplier Foxconn Expects Shipments to Be Impacted by Global Chip Shortage

Apple supplier Foxconn today said that it expects shipments to be cut by 10 percent due to the global chip shortage, reports Nikkei. In an earnings call, Foxconn chairman Young Liu said that the first two months of the quarter were okay, but the company "started to see changes happening this month."

iphone12 lineup wide
Foxconn did not mention Apple specifically, but it is a major Apple supplier and this perhaps suggests that the ongoing chip shortage will ultimately impact Apple. Foxconn is responsible for much of the assembly of Apple's iPhone models, but it does work with other companies like Google and Microsoft.

Apple has more resources than many other smaller companies that have already been hit by chip shortages, but it could run into trouble sourcing supplies for upcoming devices as the chip issues continue. Foxconn expects the shortage to extend into the second quarter of 2022.

Foxconn will ship 10 percent fewer products than planned, but "the impact on the orders that were secured a long time ago is rather limited," so it's not clear if and when Apple might be affected.

The ongoing chip shortage was caused by supply chain issues that arose during the global health crisis and weather-related events like the freeze in Texas that shut down Austin chip plants. As chip factories struggled to keep up with standard outputs during the pandemic, demand surged as people purchased devices for an at-home lifestyle, leading to higher prices. Electronics companies bought up all available supply, and chip makers are running at capacity.

With manufacturing capabilities limited, chip makers have focused on higher-end chips for smartphones and game consoles rather than the more affordable, less-advanced and less profitable chips used for everyday devices such as cars.

Because of this focus on higher-end manufacturing, the car industry has been most heavily impacted so far, and manufacturers like General Motors and Ford have had to slash production, but major tech companies could also be affected going forward.

Tag: Foxconn

Top Rated Comments

im2fast4u Avatar
41 months ago
Who’s going to chip in
Score: 8 Votes (Like | Disagree)
d5aqoëp Avatar
41 months ago

iPhone 13 won’t be that great anyway
Small notch, 120hz screens on Pro, Always on LTPO displays, bigger batteries are enough for me.
Score: 8 Votes (Like | Disagree)
ElectricPotato Avatar
41 months ago
"the freeze in Texas that shut down Austin chip plants"

Perhaps the plant owners will petition for common sense regulation to make the Texas grid reliable.
Score: 6 Votes (Like | Disagree)
mnsportsgeek Avatar
41 months ago
Everyone's impacted. Whoever says they aren't is only saying so publicly while employees work to minize the impact.
Score: 5 Votes (Like | Disagree)
Populus Avatar
41 months ago

Small notch, 120hz screens on Pro, Always on LTPO displays, bigger batteries are enough for me.
Touch ID would be the selling point for me.
Score: 4 Votes (Like | Disagree)
Doomtomb Avatar
41 months ago
iPhone 13 won’t be that great anyway
Score: 3 Votes (Like | Disagree)

Popular Stories

General Apps Messages

iMessage Down for Some Users [Update: Service Restored]

Thursday May 16, 2024 3:00 pm PDT by
The iMessage service that Apple users to send messages to one another appears to be down for some users, and messages are failing to go out or are taking an extra long time to send. There are numerous reports about the issue on social networks and a spike of outage reports on Down Detector, but Apple's System Status page is not yet reporting an outage. Update: Apple's status page says...
iOS 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...
iOS 17

iOS 17.5 Bug May Also Resurface Deleted Photos on Wiped, Sold Devices

Friday May 17, 2024 12:24 pm PDT by
A bug in iOS 17.5 is apparently causing photos that have been deleted to reappear, and the issue seems to impact even iPhones and iPads that have been erased and sold off to other people. A Reddit user wiped an iPad following Apple's guidelines in September of 2023 before selling it off to a friend. That friend updated the iPad to iPadOS 17.5 this week, and began seeing the Reddit user's old ...
oled m4 ipad pro grainy display reports

OLED iPad Pro Users Report 'Grainy' Displays, But It May Not Be a Defect

Friday May 17, 2024 5:57 am PDT by
Some new M4 iPad Pro models are exhibiting a visible static grain pattern across the OLED display, according to several user reports on Reddit (1, 2, 3) and the MacRumors Forums. Image credit: MacRumors user bk215 Users who see the grain generally report that it is most noticeable in dark environments with the display set at a low to medium brightness while viewing content with gray or muted...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...