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NZ Miss Out At The Expense Of OZ As iPhone Supply Becomes Critical

Apple is facing a bigger problem supplying new iPhones and iPads than they are making out with New Zealand missing out as supplies meant for NZ are shipped to Apple stores and retailers in Australia.

According to sources the re-emergence of COVID in Vietnam has seen that supply components to Apple shut down just as the US Company is ramping up supply of their new iPhone 13.

In Australia retailers such as JB Hi Fi and Harvey Norman make little margin selling iPhones but their presence in stores does drive traffic to stores claim analysts, who are tipping that this won’t be a problem this year as consumers “flock back” to stores after COVID lockdowns.

For Apple one of the big issues is the constrained supply of camera modules for the four iPhone 13 models. The Sensor-shift OIS stabiliser sensors make images smoother and video steadier even if users are in motion and was sold as a key feature of the new iPhone 13 premium models.

These are manufactured in Vietnam where severe work restrictions are now in place.

Vietnam, an emerging tech manufacturing powerhouse that has received a boost from the U.S.-China trade conflict, has been suffering from a surge in COVID cases since April similar to Australia.

The southern part of the country, including Ho Chi Minh City and Binh Duong Province, where some tech suppliers are based, has been heavily hit by the delta variant.

Nikki Asia claims that Apple has recently expanded the use of its new sensor-shift optical image stabilization (OIS) to all four iPhone models when previously it was only in the premium iPhone 12 Pro Max.

This has contributed to the problem.

Like Samsung, Apple is also struggling to get hold of application processors with insiders claiming that a bidding war has erupted between the two smartphone giants for components.

“Assemblers can still produce the new iPhones, but there’s a supply gap [in] that the inventories of the camera modules are running low,” one of the executives with direct knowledge told Nikkei Asia.
“There’s nothing we can do but to monitor the situation in Vietnam every day and wait for them to ramp up the output.”

The current wait time for an iPhone 13 Pro with 512 gigabytes (GB) of storage is up to five weeks in China, Australia and Japan.

The US market appears to be getting priority supply claims another source.

Apple has declined to comment on their supply problems.

Chips meant for its new iPads are now being shifted to the iPhone 13 series, this has led to longer-than-expected delivery times for the new iPad and iPad mini, one of the people with direct knowledge said.

In another developing issue industrial power cuts in China are threatening to close down the factories Foxconn, Pegatron and Luxshare who supply components and assemble iPhones and iPads.

Management at these Companies are worried about another wave of unexpected power supply stoppages in October.

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