The newly launched iPhone 13 and iPhone 13 Pro are apparently hitting a snag in production, mainly due to a new wave of health concerns and limited manufacturing capacity for the devices' camera systems in Vietnam, according to a new report from Nikkei Asia.
The iPhone 13 mini, iPhone 13, iPhone 13 Pro, and iPhone 13 Pro Max all feature sensor-shift optical image stabilization, a feature that was previously exclusive to the iPhone 12 Pro Max, and the feature’s expansion is reportedly the root cause of production difficulties.
According to today's report, the expansion of sensor-shift OIS to all models of the 2021 iPhone lineup has put on a strain on Apple's suppliers as demand for the system is significantly higher, adding to pressure to meet Apple's high-quality standards, raising demand, and the battle against the global health crisis.
This has put suppliers in the position of having to ramp up production without jeopardizing production quality, against the backdrop of severe restrictions due to COVID.
"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."
Demand for the new iPhone 13 and iPhone 13 Pro has been high, according to early estimates shared by analysts.. This year's iPhone features considerable upgrades compared to the iPhone 12, including a ProMotion display, smaller notch, and more premium camera features.
Nikkie Asia reports that production issues should begin to clear up in mid-October but adds caution that some of Apple's other suppliers, such as Foxconn and Pegatron, could start to see issues in the near future. On the flip side, the iPhone 13's high demand is leading some of Apple's suppliers to prioritize the Cupertino tech giant over other clients.
The situation may improve as soon as around mid-October as production at one of the key iPhone camera module manufacturing facilities in southern Vietnam has gradually resumed in recent days after several months of on-and-off disruption, another executive familiar with the situation told Nikkei.
So far, key iPhone assemblers Foxconn, Pegatron and Luxshare have not yet been significantly affected by the power cuts, Nikkei learned. But still unknown is the scope of a potential chain reaction from production halts at the makers of materials, components, modules and parts.
Apple's suppliers have also had to battle reduced work hours due to new energy restrictions in China, ultimately impacting production.
