Apple has 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 the Cupertino giant looks to avoid disruptions in its supply chain due to external factors.
Apple adds a new supplier for iPhone 14 components
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 will help further 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
The Cupertino giant’s supply chain has been heavily disrupted in the last couple of years. It was primarily due to the pandemic, with the semiconductor crunch also playing a key role. The recent COVID-19-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 over 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.
The Cupertino company has even urged its suppliers to open factories in Vietnam as it wants to make more iPhones and MacBooks outside of China.
Apple should launch four iPhone 14 models this year, including the 6.7-inch 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.