As the largest tech company in the world, Apple Inc APPL has a global reach, unlike any other company.
Because of its scale, Apple has a bigger market share of the global supply chain than most companies, allowing it to demand higher quality products and impose harsher terms on its suppliers.
Despite Apple's ability to muscle its suppliers, the COVID-19 pandemic, particularly the recent breakout in Shanghai, has caused unexpected delays in the production of at least one of the iPhone 14 models.
Some restrictions have eased in the greater Shanghai area, allowing suppliers to ramp up developmental efforts. Still, the consequences of the lockdowns have already impacted the production of the iPhone 14 Max model — to the tune of three weeks.
According to MacRumors, all four models of the new iPhone 14 are at the engineering verification test (EVT) stage of development, with mass production set to begin in early August for the iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max.
The 14 Max model has been delayed due to supplier Pegatron's complete shutdown of production during the Shanghai lockdowns.
The lockdowns are affecting more than just Chinese suppliers. American companies participating in the production of iPhones will be affected if the production delays reach the manufacturing timeline slated to begin in August.
Those companies include:
QUALCOMM, Inc. QCOM
Corning Incorporated GLW
Skyworks Solutions Inc SWKS
Taiwan Semiconductor Mfg. Co. Ltd. TSM
Broadcom Inc AVGO
Jabil Inc JBL
Lumentum Holdings Inc LITE
Photo: Anderson Reis via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.