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Lightning Connector and Adapter Shortage Blamed on Poor Production Yield Rates

Lightning Connector and Adapter Shortage Blamed on Poor Production Yield Rates

Apple’s new iPhone 5 is seeing record-breaking sales, and the new Lightning connector and adapter accessories are in short supply, with both products showing October shipping dates on the online Apple Store. What is causing the shortage?

AppleInsider:

A research note shared with AppleInsider, well-informed KGI analyst Ming-Chi Kuo notes a change in supplier weighting combined with low yield rates has caused a shortage of Lightning connector supply.

Being roughly 80 percent smaller than its predecessor, Lightning is a complex component and requires new production methods, therefore decreasing the initial yield rate.

Cheng Uei, otherwise known as Foxlink, has been estimated to have been allocated 60 percent of Lightning production, while Hon Hai, AKA Foxconn is manufacturing the remaing 40 percent. Supply channels are indicating that only Foxlink is able to make stable shipments due to their better yield rate, so overall supply is lagging behind the crushing demand from iPhone users.

Hon Hai was the main supplier of the 30-pin connector and received 50 to 60 percent of all orders, while other companies picked up the slack. However, the Lightning connector yield rates have been low, allowing rival Cheng Uei to take the lead manufacturing the new part for Apple. The change in supply weighting from Foxconn to Foxlink is seen as a factor in the supply shortage.

Sources report that Apple is asking Cheng Uei to dedicate additional workers and production lines to Lightning production to make up for the supply gap.

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