Apple seemingly diversified its supply chain by adding a new component supplier for the iPhone 14 lineup. Chinese company SG Micro has acquired the necessary certifications to supply components for the high-end iPhone 14 Pro series.
The move comes as Apple looks to avoid disruptions in its supply chain due to external factors.
Apple adds a new supplier for iPhone 14 components
TF International Securities analyst Ming-Chi Kuo says SG Micro will supply Apple with power management integrated circuitry (PMIC) for high-end iPhone 14 models. The integrated chip controls the battery and the level shifter.
In a Twitter thread, the analyst noted that by acquiring orders from Apple, SG Micro has “reached the tier-1 level.” This should boost its visibility in other high-end markets like automobiles and servers.
Due to its cost advantage, the Chinese company’s contribution will continue to increase in Apple’s supply chain.
Apple wants to avoid further disruptions to its supply chain
Apple’s supply chain has been heavily disrupted in the last couple of years. It was primarily due to the COVID-19 pandemic, with the semiconductor crunch also playing a key role. The recent pandemic-induced lockdown in Shanghai only made matters worse. It led to the MacBook and Studio Display assembly lines shutting down for weeks.
Due to the shutdown, the shipping time of MacBooks stretched to more than a couple of months. The situation has improved now, but Apple is looking to diversify its supply chain by adding more suppliers to avoid such issues in the future.
Apple should launch four iPhone 14 models this year, including a 6.7-inch “regular” iPhone, possibly called the iPhone 14 Max. While the lineup’s production is reportedly on schedule, the iPhone 14 Max could be hard to get your hands on initially due to display panel shortages.