Rising demand for 5G iPhone 12 series has supply chain pumped
According to industry sources, Apple’s overall supply chain is taking advantage of tight supplies of the new models by increasing their output of parts. In some countries and markets, lead times for the iPhone 12 series run from two-to-three weeks and as long as three-to-four weeks in some regions. In order to produce more parts, companies that assemble the iPhone such as Foxconn and Pegatron are adding more overtime shifts and are looking for more workers. In addition, the company that supplies Apple with the iPhone camera modules, Genius Electronic Optical (GEO), is also looking to add more employees and run more overtime shifts during November and December. The three are pushing their component suppliers to ship more product.
With sales of the iPhone 12 series so strong, companies in Taiwan that produce cooling solutions for smartphones see demand for vapor chambers and heat pipes bouncing back in 2021. Those suppliers include Chaun-Choung Technology, Auras Technology, Taisol Electronics and Asia Vital Components. Still, some of these vendors remain negatively impacted by the coronavirus. For example, Auras saw the percentage of its third quarter revenue attributed to smartphone cooling solutions decline to 5% from the 24% it reported during Q1.
These cooling solution suppliers expect stronger sales of 5G phones next year to give them a boost. Handsets that support 5G run hotter which explains why these suppliers are over the moon with the industries’ projection that sales of 5G phones will rise to 450 million-500 million units next year, up from the 220 million estimated for 2020. At that pace, demand for smartphone cooling solutions will be strong next year.
