Apple’s iPhone assembler says supply chain outlook better than feared
Customers pass a display with the Apple iPhone 13 Pro in green at the Apple Store, 5th Avenue, Manhattan. March 18, 2022.
Mike Segar | Reuters
China instituted a series lockdowns of major cities late in March to address a rise in coronavirus-related cases. Not long after, Foxconn saidIt would suspend operations in Shenzhen (a Chinese manufacturing center where some iPhones, iPads, and Macs are made),
Apple scared investors when it released its last month’s iPhone warned that third-quarter salesDue to several issues, such as supply chain constraints and other challenges, the country could see a loss of up to $8 billion.
Apple CEO Tim Cook stated that “Covid can be difficult to predict” during a conference call after reporting its second quarter results.
Foxconn chairman Liu Young-way stated that the company saw a less severe impact of the lockdowns then it expected. Nikkei reported that the company raised its outlook for this quarter and the entire year. Nikkei reported that key manufacturing facilities are operating at normal levels. Product development is continuing.
Although these comments are not meant to imply that Apple has been completely freed from constraints caused by Covid-19 lockdowns (or chip shortages), they do suggest that things have improved for iPhone manufacturing. Apple’s iPhone company generated $50.57 Billion in revenue during Q2, which is a large portion of the $97.28B total revenue.
Young-way reported that Foxconn has an overall lockdown impact of “rather limited” according to his report. Our April revenue is clear, but May’s performance in May was better than we expected.