Kinky, Thy Name is Supply Chain
Foxconn Cancels Zhengzhou Hiring Spree as New COVID Lockdown Imposed
05 MAY 2022 - Well that was fast. Yesterday, we heard that Foxconn’s “iPhone City” plant in Zhengzhou was in the midst of a hiring spree, something not anticipated for the location until late June or early July. No one seriously thought they were building the next round of iPhones yet. Instead, speculation had Foxconn either hiring more folks to keep up with current iPhone demand, or maybe getting people into the factory’s “closed loop” ahead of the seemingly inevitable next round of COVID closures.
Turns out that start was a little too late. The Mac Observer cites a report from the South China Morning Post, saying Apple’s manufacturing partner has had to stop the hiring push, with new COVID-19 lockdowns hitting Zhengzhou.
I said, “No one seriously thought they were building the next round of iPhones yet.” That does not stop people from worrying about the next round of iPhones. Both the South China Morning Post and DigiTimes say the new lockdown, set to end next Tuesday, could cause trouble for iPhone 14 production. Hard to know whether they actually think so or just like the clicks. Whatever the case, the early massive hiring is off for the time being.
Report: Apple Benches iPhone Display Manufacturer BOE
If iPhone 14 does end up delayed, it’s probably going to be impossible to tell what caused it. Shortages tied to legacy nodes? Myriad COVID closures? The trouble BOE has gotten into with Apple? Could be that, because it has gotten into more.
BOE makes iPhone displays for Apple, or did until a couple of weeks ago. Toward the end of April we heard word that the company was having trouble with display production. That was due in part to a lack of display drivers, along with problems producing panels with the chips it had on hand. Originally expected to produce 40-million iPhone displays for Apple, that expectation was lowered to 30-million, then it was left kind questionable.
It won’t be 30-million. MacRumors highlights a report from The Elec, saying, “Apple has virtually cut Chinese display manufacturer BOE out of the iPhone 13’s supply chain after discovering design changes to its OLED panels…” The piece goes on to say:
…BOE reportedly changed the design of its OLED panels by expanding the circuit width of thin-film transistors. The Elec claims that when Apple discovered the change, it told BOE to halt production.
That said, the piece expresses doubt that BOE is permanently benched. Keeping them in the loop keeps pressure on iPhone’s primary display manufacturers Samsung and LG. For now though, another kink in the supply chain.
