Power outages in China’s Sichuan Province would not affect the operations of Apple Inc’s iPhone and computer assemblers, such as Hon Hai Precision Industry Co (鴻海精密) and Pegatron Corp (和碩), as their products are primarily made in other manufacturing sites in China, Fubon Securities Investment Services Co (富邦投顧) said yesterday.
Hon Hai assembles iPhones in Zhengzhou in Henan Province, while Pegatron and Luxshare Precision Industry Co (立訊精密) make iPhones in Shanghai and Kunshan in Jiangsu Province, Fubon Securities said in a report.
Apple’s MacBook laptops are assembled by Hon Hai in Zhengzhou and by Quanta Computer Inc (廣達) in Shanghai, while its iMac desktop computers are made by Quanta in Shanghai, the report said.
“As the manufacturing hubs for those products are not located in Sichuan, we believe the new iPhone 14 series and MacBooks equipped with M2 chips will hit the market as scheduled,” Fubon Securities analysts Arthur Liao (廖顯毅) and Rita Tung (董姵君) said in the report.
Hon Hai is the major manufacturer of the new iPhone 14 series with an order allocation of more than 70 percent, Fubon Securities said, adding that Apple is set to unveil new-generation iPhones next month.
The Sichuan provincial government would suspend the supply of power to industrial customers from Monday to Saturday to ensure grid stability amid a heat wave that has engulfed southern China and stretched power grids to the limit, Chinese media reported on Monday.
The provincial government would prioritize supplying power for residential use, reports said.
Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, yesterday said that the power cuts would have only a limited effects on its operations in Chengdu in Sichuan Province.
The company’s Chengdu plant belongs to its B business group, which was established in 2010 and manufactures products such as wearables, mobile devices, and Internet of Things and other devices, its WeChat account showed.
TF International Securities Group Co (天風國際證券) analyst Kuo Ming-chi (郭明錤) posted on Twitter that power rationing in Sichuan could affect iPad assembly plants, including Hon Hai’s Chengdu facility and Compal Electronics Inc’s (仁寶電腦) factory in Chongqing.
However, Kuo said the power restrictions would have only a limited effect on the companies’ production if they are lifted on Saturday as scheduled.
The flexible production schedule of iPad plants would also help reduce the effect of power outages, he said.
Kuo said it was worth observing whether similar outages could occur in the next few months and whether they would affect Apple’s new product shipments during the peak season.
Asked for comment, Compal said it has yet to obtain the necessary information to give a clear response.
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