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

Popular Stories

Nineth iOS 19 Feature

iOS 19 Beta is a Month Away With These New Features for Your iPhone

Thursday May 8, 2025 7:37 am PDT by
The first iOS 19 beta is just one month away, and there are already many new features and changes that are expected with it. Apple should seed the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key iOS 19 rumors...
Foldable iPhone 2023 Feature Homescreen

Apple's Foldable iPhone Display Tech May Set New Industry Standard

Thursday May 8, 2025 3:29 am PDT by
Apple's upcoming foldable iPhone will feature a new type of display panel developed by Samsung that has never been used in a foldable product, claims a source with links to Apple's supply chain. According to the account yeux1122 on the Korean Naver blog, the foldable iPhone will use a custom display process for which Apple will hold branding trademark rights, and that meets Apple's stringent ...
iOS 18

Here Are Apple's Full iOS 18.5 Release Notes

Tuesday May 6, 2025 2:17 pm PDT by
Apple today seeded the release candidate version of iOS 18.5 to developers and public beta testers, giving us a look at the final version of the update that will be provided to the public next week. With the release candidate, Apple provided release notes, so we have a more complete look at the new features that are included in the update, including those that weren't found during the beta...
siri glow

iPhone Users Now Able to Submit Claims in $95 Million Siri Spying Lawsuit

Wednesday May 7, 2025 11:40 am PDT by
If you owned a Siri-compatible device and had an accidental Siri activation between September 17, 2014 and December 31, 2024, you could be eligible for a payment from Apple as part of a class action lawsuit settlement. Apple in January agreed to pay $95 million to settle a class action lawsuit involving Siri spying accusations, and a website to distribute the funds has now been set up and...
Mayday Calendar

Apple Acquisition Hints at Upgraded Calendar App on iOS 19 or Beyond

Friday May 9, 2025 9:13 am PDT by
Apple acquired Canadian startup Mayday Labs in April 2024, according to a European Commission listing, spotted by French blog MacGeneration. The acquisition had not received widespread attention from tech publications until now. Apple is legally required to report certain acquisitions to the European Commission, under the terms of the EU's Digital Markets Act. Mayday Labs founder Jeremy...
fortnite apple featured

Epic Games Submits Fortnite to U.S. App Store

Friday May 9, 2025 9:57 am PDT by
As promised, Epic Games today submitted Fortnite to the U.S. App Store, and if approved by Apple, it will mark the first time that the Fortnite app has been available in the United States since 2020. Fortnite will include options to purchase in-app currency from the web rather than through in-app purchase, which is what got the game banned to begin with. This time, though, Apple has been...
airpods pro purple

Apple's Camera Equipped AirPods and Apple Watch Could Launch as Soon as 2027

Thursday May 8, 2025 10:14 am PDT by
Apple is working on versions of the AirPods and Apple Watch that incorporate a camera, and the devices could be ready to launch sometime around 2027, reports Bloomberg. Apple has developed a chip codenamed "Nevis" that will be used for its camera-equipped Apple Watch, while a chip codenamed "Glennie" will be incorporated into the AirPods. Apple is aiming to have the chips ready "by around...

Top Rated Comments

im2fast4u Avatar
54 months ago
Who’s going to chip in
Score: 8 Votes (Like | Disagree)
d5aqoëp Avatar
54 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
54 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
54 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
54 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
54 months ago
iPhone 13 won’t be that great anyway
Score: 3 Votes (Like | Disagree)