Credit Suisse research analyst Edmond Huang and a team wrote in a note to clients this week, “Overall production of hardware could gradually resume to normal levels in June/July, with a brighter outlook for Apple’s supply chain than Android, while semiconductor would see more demand problems than supply.”
Apple’s supply chain has brighter prospects than Android’s when it comes to recovering from the shock of China’s latest Covid controls, Credit Suisse analysts said in a report this week.
“Our checks suggested the iPhone 14 build schedule remains the same, but initial production will be smaller which may be because of certain model production delays or some parts/chips shortage,” the report said. “We think the overall production orders of new models will stay similar to last year but the final production volume may vary on supply disruption.”
Last week, iPhone supplier Foxconn said the impact of China’s Covid controls wasn’t as bad as expected, and that the company’s full-year outlook was better than what was expected at the beginning of the year.
Foxconn, also known as Hon Hai, said that operations were normal in important areas of production in mainland China, where the company has more than 30 sites… “We believe Apple’s supply chain has higher flexibility vs. Android, as key [Apple] assembler Hon Hai has a much diversified capacity allocation,” Bank of America analysts wrote in April.
In contrast, 80% of Android production capacity is in the Greater Bay Area and east China, especially Shanghai and Suzhou in Jiangsu province, the Bank of America report said.
MacDailyNews Take: Gee, that’s too bad. Perhaps karma has decided to do to the derivative Android stolen product what various and sundry legal systems around the world couldn’t or wouldn’t.
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