To manage supply chain, Apple makes early start on iPhone 14

All those components, some hard to find (Thanks to iFixit)

Apple seems to be launching production of new iPhones a little earlier this year as the company works to mitigate the impact of component, labour and logistical supply problems that are impacting the industry currently.

Making an early start

Media reports tell us the company has asked Foxconn to begin recruitment of workers to build iPhone 14 two months earlier than it has before. This suggests either an earlier than anticipated debut of the new product, or (which I consider more likely) Apple just wants to build up enough stock to mitigate any fresh challenges that may emerge.

The idea is that by getting started now the impact of any factory closures as the pandemic ravages nations can be mitigated. The sources claim Apple intends manufacturing 30 million iPhone 14 units in advance of launch.

Sensible supply chain management

The report also suggests that much of the production has been gathered into one factory in Zhengzhou, to minimize uncertainty of labor supply. While it isn’t clear these efforts will succeed, they do signal the urgency with which Apple is working to support future product supply and underline the challenges faced by every industry at this time.

Apple is also working hard to diversify its supply chains. Manufacturers have been asked to set up production facilities outside China, with high level talks in India, Singapore, and Vietnam now bearing fruit in the form of facility investment. In India, factories are expected to churn out more iPhone models for global markets this year.

What about the iPhone 14?

In related news, Apple continues to diversify across its supply and logistics chains. The company has contracted Korean firm, LG Innotek, to manufacture the high-quality 48-megapixel main and higher quality front-facing cameras it intends deploying in the iPhone 14. Sharp will also work on these modules, according to ETNews.

The modules are expected to be more costly which will be reflected in price of the iPhone 14 – but they are also expected to deliver new photography and augmented reality tools that will justify that additional cost.

Additional improvements in iPhone 14 are currently speculated to include:

• A15 or A16 (Pro models) Bionic chip with additional RAM
• 7-inch display.
• Punch hole cutout FaceID/selfie camera.
• Emergency satellite connectivity

With an installed base of an estimated 1.8 billion users (BoFA), Apple evidently hopes to continue to tempt people to the growing number of services it provides.

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