Image source: Phone Arena
Apple loyalists may have to wait even longer as reports have surfaced that the iPhone 14 may be delayed due to rising tensions between China and Taiwan.
The delay could be attributed to US House Speaker Nancy Pelosi’s visit to Taiwan.
Pelosi’s visit in connection with the possible delay
Apple is the primary customer of the Taiwan Semiconductor Manufacturing Company or TSMC.
The company often supplies chips to Pegatron, where iPhones are assembled in China.
Nancy Pelosi’s visit to Taiwan only adds to the strained relationship between the two.
As a result, the Communist Party of China issued new regulations prohibiting any mention of Taiwan or the ROC in shipping documents.
The regulations suggest that some (if not all) of the hardware could be shipped back to Taiwan, delaying production of the iPhone 14.
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The “One China” policy
Pelosi’s visit was seen as a violation of the “one China” policy the United States has adhered to for fifty years.
The policy states that the US government “recognizes that all Chinese on both sides of the Taiwan Strait maintain that there is only one China and that Taiwan is part of China.”
He also states that the United States “does not question this position.”
Although the United States has a formal relationship with the People’s Republic of China, it also has an “unofficial” relationship with Taiwan, which the PRC says was made official with Pelosi’s visit.
The result
The visit prompted the People’s Republic of China to flex its military muscles, flying 68 fighter jets off the coast of Taiwan, sending warships to the Taiwan Straits and sending drones to Japan.
The People’s Republic of China has also broken off talks with the United States over earlier issues.
Pegatron
Pegatron is a Taiwanese electronics company specializing in computers, communications and consumer electronics.
During the visit, the company’s vice president and top TSMC executives were spotted with Pelosi, which added fuel to the fire.
Their appearance could also spark a bitter trade war between China and Taiwan, in which Apple and other US-based companies are caught in the middle.
Apple has made it clear to its supply chain that this is an urgent matter as the iPhone 14 series is being assembled.
Reports have also surfaced that the iPhone 14 and iPhone 14 Max are having issues with their screens, and the camera lenses are cracking.
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The iPhone reveal is still weeks away
With the iPhone 14 lineup due to be unveiled in a few weeks, the last thing Apple needs is for shipments destined for the lineup’s assembly line to be rejected by customs and sent back to Taiwan.
Labeling “Made in Taiwan” on import declaration forms or shipping boxes from China could also result in shipments being blocked or rejected.
In addition, a fine of 4,000 yen or 592 US dollars may also be imposed.
Meanwhile, Taiwan requires all exports to carry a label indicating the shipment’s origin, which means that they must be stamped as coming from Taiwan or the Republic of China, which Chinese customs do not want to see.
Apple has warned Taiwan-based suppliers to develop contingency plans to avoid supply chain disruptions.
Apple has also instructed its supply chain to review and process labels on boxes and forms for shipments from Taiwan to China, if necessary.
While chip shortages and supply chain issues remain a thorn on Apple’s side, the company must remain diplomatic.
References:
iPhone 14 could be delayed due to growing China-Taiwan tension
Apple caught between suppliers in Taiwan and assemblers in China; iPhone 14 delay possible
