According to Apple’s iPhone assembler, the supply chain images are stronger than expected

According to the Nikkei Asia, Apple’s iPhone conference said the impact of the Covid-19 locks in China was better than expected. Foxconn suspended operations in Shenzhen, a key industrial location, in late March after Chinese authorities closed several major cities. Customers walk through the computer screen display of the new green Apple iPhone 13 pro inside the Apple Store on Fifth Avenue in Manhattan on March 18, 2022, in New York City. On March 18, 2022, customers passed by a digital display showcasing the new green Apple iPhone 13 pro inside the Apple Store on Fifth Avenue in Manhattan, New York.

Foxconn, Apple’s special assembly line of iPhones, said the impact of Covid China locks on its services was not as bad as expected, Nikkei Asia reported Tuesday. At the end of March, China ordered a series of locks in some major cities after seeing a surge in coronavirus cases. Soon after, Foxconn announced it would stop operations in Shenzhen, a Kannada manufacturing facility where the company launches some iPhones, iPads and Macs.

Apple spooked investors last month when it warned that third-quarter sales spending could be hurt by as much as $ 8 billion as a result of various challenges, including supply chain constraints. Covid is difficult to predict, ā€¯Apple CEO Tim Cook said in a conference call with analysts after the company reported its second-quarter earnings results. Foxconn Chairman Liu Young-way said the company has seen more limited impact from locks than it expected, and is raising its stakes for the current quarter and full year as a result, the Nikkei said. Key manufacturing facilities are operating at normal levels and ongoing product development, the company said, according to Nikkei.

The commentary does not mean that Apple is completely free from the supply chain constraints caused by the Covid-19 locks, or malfunctions, but it does suggest that the situation is at least a step forward for iPhone production. Apple’s iPhone business generated $ 50.57 billion in revenue during Q2, most of its total revenue of $ 97.28 billion. “The general lock effect on Foxconn is rather limited,” Young-way said, according to the report. “You can tell from our earnings in April, and May’s performance is also better than we expected.”

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