Mass production of iPhone 14, shipping schedule unaffected by geopolitics: Ming-Chi Kuo

The iPhone 14’s mass production and shipment schedule are unaffected by the ongoing tension between China and Taiwan, analyst Ming-Chi Kuo said. He refuted reports that Apple’s September launch event could be postponed due to a delay in iPhone 14 shipments. The delay was anticipated after China reportedly began strictly enforcing a rule according to which parts made in Taiwan must be labeled correctly. Apple outsources chip manufacturing to Taiwan Semiconductor Manufacturing Company Limited (TSMC) and China is the most important hub for global iPhone shipments.

Kuo said his investigation indicates there is currently no supply chain impact for iPhone 14 models. Reports suggest a delay in iPhone shipments due to geopolitical tensions between China and China. Taiwan which reportedly intensified after the visit of US House of Representatives Speaker Nancy Pelosi and a congressional delegation to Taiwan. TSMC-made Apple chips and other parts come from Taiwan to China, which is a major hub for global shipments.

It was reported that under the long-standing rule, parts and components made in Taiwan must be labeled as made in either “Taiwan, China” or “Chinese Taipei”. Reports suggest that any shipment marked “Made in Taiwan” violates this rule and may be detained and checked by Chinese customs. A fine of up to CNY 4,000 (approximately Rs. 47,000) for violating the rule may be imposed. It is possible that the shipment will be rejected, causing a delay in shipments.

Recently, a report suggested that Apple had asked its suppliers to increase shipments of iPhone 14 models from 90 million to 95 million. The company’s main supplier, Foxconn, has reportedly increased its hiring bonus for iPhone workers as the supplier struggles to keep pace with demand for upcoming models.

Apple’s iPhone 14 series with four models – iPhone 14, iPhone 14 Pro, iPhone 14 Max and iPhone 14 Pro Max – is expected to become official in September. Apple has suffered delivery delays due to a shortage of components caused by COVID-19 lockdowns in China and, more recently, tension between Ukraine and Russia.

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