The global chip crisis might be coming to an end, almost after two years. One of Apple’s biggest partners, Hon Hai Precision Industry Co, also known as Foxconn, mentioned the ease in supply constraints starting from the current quarter.
This statement coincides with Apple CEO Tim Cook’s made at the Q1, 2022 earnings call. Cook said that he expects the company to have even better performance in the upcoming Q2, 2022 quarter than Q1, 2022 with $123.9 billion in revenue and 11% Year-on-Year growth because supply constraints will ease for the company.
“We saw supply constraints across most of our products. We’re forecasting that we will be less [constrained] in March than we were in the December quarter. We’re not projecting that. You need to know a lot of things to be able to make an accurate forecast there, like how are other people’s demands in addition to what kind of supply we can squeeze out.”
Along with Apple, Foxconn hints at ease in supply constraints for manufacturers across industries
According to Bloomberg, James Wu, a spokesman for Hon Hai Precision Industry Co said that “There will be a major improvement in parts shortages in the first quarter, with “overall supply constraints” set to ease in the second half” at the company event in Taipei. This news is a positive indicator for manufacturers across industries.
In addition to being a key manufacturing partner to Apple Inc., Hon Hai makes gadgets for global brands including Dell Technologies Inc., Sony Group Corp. and Nintendo Co. It is also expanding in production of electric vehicles, agreeing in October to acquire Lordstown Motors Corp.’s pickup manufacturing facility in Ohio.
Apple saw a $6 billion loss in revenue in Q4, 2021, and expected even greater on in Q1, 2022. In spite of introducing two new tablet models, iPad mini and iPad, Apple had to reduce iPad’s production by 50% due to supply constraints which was the only product to see a 14% decline in sales during the 2021 holiday season.
