Tag: supply chain issues

  • Xiaomi Motors Enhances Supply Chain for Increased SU7 Production

    Xiaomi Motors Enhances Supply Chain for Increased SU7 Production

    According to recent reports, Xiaomi is facing challenges with “capacity bottlenecks” and supply chain issues in the production of its debut electric vehicle, the Xiaomi SU7. Despite encountering these obstacles, the company is actively working on resolving these concerns while also focusing on enhancing production efficiency.

    Xiaomi’s Efforts to Boost SU7 Production

    On April 3, Xiaomi conducted the inaugural batch delivery event for the Xiaomi SU7 at one of its automobile manufacturing plants in Yizhuang, Beijing. The Chinese publication Securities Times highlighted that Xiaomi is intensifying efforts to enhance production capacity, engage supply chain partners effectively, and ensure timely delivery of current and future orders.

    Production Targets and Strategies

    Initial production projections suggest that monthly output is poised to exceed 3,000 vehicles in March, rise to around 4,000 to 5,000 units in April, and eventually stabilize at 6,000 vehicles by the end of the year. Xiaomi Motors has reportedly urged suppliers to enhance production capabilities to achieve a monthly total of 10,000 units.

    Xiaomi Motors Enhances Supply Chain for Increased SU7 Production

    Focus on High-End SU7 Models

    Particular attention is being directed towards scaling up production for the high-end Max version of the SU7. Sales figures for the SU7 range have surpassed initial expectations. Xiaomi’s CEO, Lei Jun, expressed optimism about the car’s success in December, acknowledging the potential variance in user preferences. However, the product’s reception has been positive thus far.

    During the recent delivery event in China, Lei Jun announced that over 100,000 individuals have already selected the Xiaomi EV. Xiaomi Motors has confirmed that they are currently facing a surge in demand, with orders exceeding their production capacity.

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  • Supply chain issues push MicroLED Apple Watch delays beyond 2026

    Supply chain issues push MicroLED Apple Watch delays beyond 2026

    Apple‘s plans to transition to Micro LED technology for its Apple Watch series may face delays until after 2027 due to challenges in finalizing the supply chain for the necessary components. This upgrade aims to replace OLED displays in Apple Watch models, offering improved lifespan, brightness, and efficiency.

    MicroLED Apple Watch Now Projected to Launch in 2027

    Last year, initial reports suggested Apple might introduce Micro LED technology in its Apple Watches by the end of 2024. However, projections have been postponed, and now the expected timeline for this transition is not before the first quarter of 2026, as per market research firm TrendForce.

    High Production Costs and Lower Yield Rates Pose Challenges

    The primary challenge in Apple’s move to Micro LED technology is the high production costs and lower yield rates. The manufacturing cost for a Micro LED display for the Apple Watch could be as high as $150, in contrast to the current $38 cost for OLED displays. This significant cost difference raises concerns about the retail pricing of future Micro LED Apple Watches, potentially positioning them at a much higher price point compared to current models and even OLED iPhones.

    Advantages of Micro LED Technology

    Despite these challenges, Apple’s interest in Micro LED technology is driven by its advantages over OLED, including the potential for enhanced display quality on smaller screens. With a feasible pixel density range of 300-400 PPI, Micro LED offers a suitable upgrade path for the wearable device.

    Collaboration with Suppliers to Overcome Obstacles

    Apple is reported to be collaborating with various suppliers to overcome these obstacles, including Epistar and Osram for wafer and chip production, LuxVue for backplane technology, and LG Display and ITRI for additional componentry. However, without a finalized supply chain, the path to mass production remains uncertain.

    The Future of Smartwatch Displays

    As the industry watches Apple’s efforts to innovate within its wearable lineup, the potential shift to Micro LED technology represents a significant investment in the future of smartwatch displays. However, with production costs and supply chain complexities posing significant challenges, consumers may have to wait longer than anticipated for the next big leap in Apple Watch technology.

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