Apple Inc (AAPL)

[Investors3]

Apple iPhone assembler Foxconn says component shortages are easing
Thursday, February 10, 2022 9:13 am

The biggest assembler of iPhones, Taiwan’s Foxconn, said component shortages that have hampered electronics production for more than a year are showing signs of easing, a potentially encouraging signal for Apple and manufacturers across multiple industries.

Debby Wu for Bloomberg:

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. [Foxconn], said during a company event in Taipei on Thursday.

Power management chips are still in short supply, Hon Hai’s Wu said. The Taiwanese company, which buys about $55 billion of chips a year, is striving to minimize the impact from supply-chain challenges, he said. The company expects first-quarter revenue to be little changed compared with a year earlier, Wu said.

In addition to being a key manufacturing partner to Apple Inc., Hon Hai makes gadgets for global brands including Dell Technologies Inc., Sony Group Corp. and Nintendo Co. It is also expanding in production of electric vehicles, agreeing in October to acquire Lordstown Motors Corp.’s pickup manufacturing facility in Ohio. Production of EVs in Ohio is set to start in the third quarter of this year, Hon Hai Chairman Young Liu said at the Taipei event.

MacDailyNews Take: Good news for Apple, which CFO Luca Maestri presaged during Apple’s January 27th Q122 conference call when he said, “We expect to achieve solid year-over-year revenue growth and set a March quarter revenue record despite significant supply constraints, which we estimate to be less than what we experienced during the December quarter.”

https://macdailynews.com/2022/02/10/apple-iphone-assembler-foxconn-says-component-shortages-are-easing/