Apple loyalists may have to hold out a little longer, with reports circulating that the iPhone 14 may be delayed due to rising tensions between China and Taiwan.
The delay is attributed to House Speaker Nancy Pelosi’s visit to Taiwan last week.
Pelosi’s visit
Apple is the top 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 has issued new rules prohibiting any mention of Taiwan or the Republic of China in shipping documents.
The regulations suggest that some (if not all) of the hardware can be returned to Taiwan, delaying the launch of the iPhone 14.
Read also: iPhone 14 Rumored to Integrate South Korean Tech for Selfie Cameras
The “One China” policy
Pelosi’s visit was deemed a violation of the “one China” policy that the United States has followed for 50 years.
The policy states that the US government “acknowledges that all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China.”
He also claims that the United States “does not challenge that position.”
While the United States has a formal relationship with the People’s Republic of China, it also has an “unofficial” relationship with Taiwan, which was made official with Pelosi’s visit, according to the People’s Republic of China.
The result
The visit prompted the People’s Republic of China to flex its military muscle, fly 68 fighter jets off the coast of Taiwan, send warships into the Taiwan Strait, and send drones to Japan.
The People’s Republic of China has also broken off talks with the United States over earlier projects.
Pegatron
Pegatron is a renowned Taiwanese electronics company specializing in computers, communications and consumer electronics.
During the visit, the company’s vice president and senior TSMC executives were seen with Pelosi, adding fuel to the fire.
Their actions could also lead to a bitter trade war between China and Taiwan, between which Apple and other US-based companies stand.
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 that the camera lenses are breaking.
Read also: Apple Revenue Reports Show iPhone Still the Bestsellers, Other Products Have Declined in Sales
Other problems
With the iPhone 14 series unveiled in a few weeks, the last thing Apple needs is for shipments bound for the training assembly line to be rejected by customs and sent back to Taiwan.
The “Made in Taiwan” label on import declarations or shipping cartons from China may 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 export products to carry a label indicating the shipment’s origin, meaning they must be stamped as coming from Taiwan or the Republic of China, which Chinese customs don’t 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 check and process labels on cartons and forms when needed for shipments from Taiwan to China.
While the chip shortage and supply chain problems 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
