Apple Supplier Foxconn Says Shortages Now Easing

Foxconn, the biggest assembler of iPhones, today announced that the component shortages that have constrained the supply of devices over the past two years are now showing signs of easing, Bloomberg reports.

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The first quarter of 2022 is said to be experiencing a "major improvement" in parts shortages, and "overall supply constraints" are expected to ease in the second half of the year, a spokesperson for Foxconn commented at a company event earlier today. While TSMC manufactures Apple's custom-designed chips, Apple is still reliant on many industry-standard chips, such as for power management. Display drivers and power management chips have been among the components that have constrained Apple's manufacturing capabilities, and Foxconn added that power management chips remain in short supply.

The announcement is potentially an encouraging sign across the technology manufacturing industry, but TSMC has warned that chip supplies will remain tight throughout 2022. Major suppliers like Foxconn and TSMC are planning to maintain larger inventories in the future to ensure supply security.

Smartphone shipments have slowed over the past two years due to shortages, but supply chain disruption has primarily affected low-end vendors rather than titans such as Apple. Industry analysts believe that bottlenecks will not fully ease until the second half of 2022.

Nikkei Asia reported earlier this month that Apple is struggling to tackle a backlog of iPad orders because it prioritized iPhone 13 shipments instead. The 14- and 16-inch MacBook Pro models are also still in short supply around the world.

While supply chain constraints cost Apple $6 billion in the fourth fiscal quarter of 2021, the company's supply chain is now firmly in the process of recovering as it prepares for a slate of new product launches this year.

Tag: Foxconn

Top Rated Comments

TheYayAreaLiving ?️ Avatar
28 months ago
This is great news. Fingers are crossed this year there won't be any shortages at all. Won’t be happy if there are any delays this year. Last year was no joke.
Score: 7 Votes (Like | Disagree)
siddavis Avatar
28 months ago

All i keep hearing and reading is about the parts supply issue. Does anyone know what the actual issue was? was it lack of raw materials making the parts? lack of labour? or is it a case that there is a supply issue because the companies that make the parts didn't make enough? or that they are just not physically capable of making more to supply everyone that wants them?
It was decided that shutting things down was the best approach to slow the spread of the pandemic. Little discourse was allowed regarding the other consequences. Here we are.

So yes to all of those questions.
Score: 5 Votes (Like | Disagree)
WWPD Avatar
28 months ago

Time for a new stock image
What are you talking about? Those two are still discussing what's on that clipboard to this very day.
Score: 4 Votes (Like | Disagree)
Mr. Dee Avatar
28 months ago
I can say this has not affected me at all. My iPhone X is still going strong and I’m not looking at upgrading until 2023 and if it’s still working fine, might push out the upgrade to 2024. My 2017 iPad Pro is also working just fine too and I can’t see when I will be upgrading that either. Bought a M1 MBP back in 2020 so I plan keep that maybe for the next 9 years. You’d be surprised how long some folks keep their MacBooks these days.

I do want a large screen iMac though, but do I really when I could just buy a 27 or 32 inch display? Will think about it more when the 3rd gen of the large screen iMac comes out.

Apple Watch is likely to be the first device I upgrade since I am rocking a Series 3. But if Apple gives it watchOS 9 then hey, another year to save.

Apple products last long and with great software support you really can stretch out those hardware upgrades.
Score: 3 Votes (Like | Disagree)
icanhazmac Avatar
28 months ago

I suspect it’ll probably be mid third quarter before we finally start seeing some stability with tech/electronics in general. Anything from surround-sounds to even certain smart TVs are still constrained. It probably will be that way, given that certain parts of Asia were hit late with Omicron.
I just want to know when the buy 1 get 1 free sale on new cars will start!
Score: 3 Votes (Like | Disagree)
44267547 Avatar
28 months ago

I just want to know when the buy 1 get 1 free sale on new cars will start!
That’s a really screwed up market too. In my area, used car lots are gone, new car dealerships have zero new inventory and I don’t see that industry settling anytime soon. Part of me actually thinks, The whole ‘car buying’ dynamic has changed where it will probably never be the same again. The used vehicle consumer market is just insane right now with inflation. (Inflation percentages anywhere from ~20% to 25%.)
Score: 3 Votes (Like | Disagree)

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