A new supply chain reports today that Pegatron has solved their issue of labor shortage at its plants in China and has made prompt shipments allowing its major brand client to start delivering its new smartphone models in late October, according to company chairman TH Tung.

Though he did not disclose the names of the new products or the client, Tung was obviously referring to the new iPhone devices, according to industry sources. The company is a key assembler for iPhone XR, and it has also secured orders for iPhone XS Max, added the sources.

On September 25 Patently Apple had reported on supply chain news that "Apple had reportedly shifted more of its orders for the iPhone XR to Foxconn Electronics from Pegatron." Pegatron's Chairman Tung's current commentary to the press was tantamount to a denial of rumors that claimed Apple had lowered the proportion of iPhone XR orders allocated to Pegatron to 35%, and switched more orders to Foxconn Electronics, as Pegatron's production had been affected by shortages of labor and some key components.

The issue of labor shortage has been mostly resolved at the end of September or in early October, enabling Pegatron's mass-production of new products for the client, Tung claimed.

Tung also insisted that Pegatron is capable of raising its workforce in China several times in a period of 2-3 weeks to accommodate major product launch by clients.

Chairman Tung also noted that Pegatron was currently studying the feasibility of producing in the Southeast Asia region and will make some adjustments if the U.S.-China trade war threatened business.

In August Patently Apple reported on claims that manufacturing powerhouses behind much of the world’s electronics from iPhones to notebooks were preparing to move chunks of production away from China and toward such locales as Eastern Europe, Mexico and Southeast Asia in case of expanding U.S. China trade war.