Foxconn Likely To Receive the Bulk of Orders, but Apple Still Intends to Minimize Risk by Shifting Orders Away From Its Chinese Partner
With analyst Ming-Chi Kuo estimating that Apple may lose up to 20 million shipments of iPhone 14 Pro and iPhone 14 Pro Max models in the fourth quarter this year, he also states that Foxconn may lose out on exclusive orders for the high-end iPhone 15 lineup. Apple’s reported decision was no surprise, given that for weeks, Foxconn’s largest iPhone assembling plant in China was subjected to production halts. First, it was due to a rise in COVID-19 cases, and the extra measures did not sit well with employees, forcing them to storm out of the facility and start rioting in the region. To make up for lost shipments, Pegatron and Luxshare will fulfill 10 percent of Apple’s iPhone 14 Pro and iPhone 14 Pro Max orders, but these may arrive in late December. In any case, Apple is attempting to minimize further risk, which means that Pegatron and Luxshare are likely to increase hiring and upgrade their own assembling facilities to take on additional iPhone 15 Pro and iPhone 15 Ultra orders. Additionally, the technology giant has shifted production away from China to places like Vietnam and India. Unfortunately, Zhengzhou remains the largest iPhone assembling facility at this time, producing 70 percent of the world’s iPhones and employing around 200,000 people. Needless to say, it will take a while before Apple can significantly reduce its dependency on China.
