iPhone assembly partner Foxconn says it is seeing signs that component shortages are easing and that it expects to see major improvements in supplies during the rest of the quarter. Foxconn’s remarks conflict with those made by Apple chipmaker TSMC, which has said that it expects supply constraints to continue through at least the rest of the year.
The biggest assembler of iPhones said component shortages that have plagued electronics production for more than a year are showing signs of easing, a potentially encouraging signal for manufacturers across industries.
There will be a major improvement in parts shortages in the first quarter, with “overall supply constraints” set to ease in the second half, James Wu, a spokesman for Hon Hai Precision Industry Co [aka Foxconn] said during a company event in Taipei on Thursday
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The company expects first-quarter revenue to be little changed compared with a year earlier, Wu said.
While Apple designs its own major components in its devices, such as the A-series chips used in the iPhone, iPad, and Apple TV, the company relies on industry-standard chips for other components, which has continued to act as a roadblock. Foxconn says that power management chips continue to remain in short supply.
Apple said that component shortages cost around $6B in lost sales in each of the last two quarters. The company continues to expect “significant” shortages continuing into the current quarter.
(Via 9to5Mac)
