Hon Hai Zhengzhou factory resumes normal recruitment, LCD version of new iPhone or postponed shipment

Hon Hai’s Zhengzhou plant resumed normal recruitment operations after the Dragon Boat Festival in mid-to-late June. The Zhengzhou plant is the iPhone assembly base camp and has begun to move. According to the information of Hon Hai Foxconn Zhengzhou Science and Technology Park, the Zhengzhou plant will open online registration after the Dragon Boat Festival holiday. Candidates can go to the recruitment center or the processing zone recruitment center for an interview.

Supply chain sources said that this year Apple will release two new AMOLED iPhones. The two OLED versions are scheduled to purchase about 70 million units, of which 45 million will have 6.46-inch screens and 25 million will have 5.85-inch screens. The main assembly plant for OLED panels is Hon Hai, which also gives Hon Hai a chance to take the lead in the third quarter.

As for the new 6.1-inch LCD version of the iPhone, because the selling price is the lowest (approximately US$600 to US$700), the outside world was optimistic that the sales volume should be the highest (more than half of the sales volume is the LCD version), but the purchase volume this year Downgrading to 30 million units, the shipment schedule may be delayed to November, two months later than the original September.

Supply chain sources believe that the delay in shipment of the LCD version of the iPhone may be the first time the Notch design has been adopted, resulting in lower production yields for panel manufacturers such as Japan Display (JDI). The main assembly plants for the LCD version of the iPhone are Pegatron and Wistron. This year's peak season effect may be delayed, but this may drive the off-season performance in the first quarter of next year.

In terms of other Apple products, Tianfeng Securities analyst Ming-Chi Kuo believes that Apple will also launch new MacBook Air and Apple Watch in the second half of the year. Among them, the new MacBook Air will be a 'low-priced' product, and the price will be cheaper than the current model; the new Apple Watch has the same size, but it will be equipped with a larger screen by narrowing the frame (estimated to be 15 %).

Apple’s annual new machine orders have become the vane of the future product direction of the entire mobile phone industry chain, especially for peripheral accessory companies parasitic on Apple’s mobile phone products, such as fuselage protective shell companies. Therefore, a large number of research institutions in the industry conduct a large number of researches on Apple's supply chain companies in order to predict the future development direction and profitability of the industry.

Currently, with the limited production capacity of flexible LCD for Samsung in the display industry, the change in orders for Apple’s new LCD version of the iPhone and the delay in launching will not only directly affect the companies producing Apple’s iPhone LCD displays, JDI and LGD At the same time, the company’s operating performance will also have a greater negative impact on peripheral supporting companies that used to engage in Apple’s LCD display iPhone.

The layout of LGD and JDI on OLED mobile phone screens has obviously slowed down, or almost stagnated. If Apple further shrinks its orders for LCD displays and eventually adopts OLED displays, LGD and JDI may completely lose its iPhone display orders.

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