Supply Chain Restrictions For the first time since the epidemic began, Apple finally stopped producing iPhones. This is the first time in more than 10 years that the iPhone product line has been shut down for several days. Informed sources say that supply chain problems and, of course, power outages in China were the main reason for this.
According to the publication Nikkei, Apple typically increased its product line during this time of year to meet market demand during the holiday season. But the Cupertinos have reduced production line workers’ working hours this year because a shortage of parts has disrupted the production process.
A supply chain manager told the publication that given the shortage of parts and chips, it did not make sense to have overtime. Various manufacturers, including Apple, often used the “Golden Week” holiday to boost production to prepare for year-end purchases. But this is not the first time this has happened in recent years.
Apple; Unable to produce iPhone
Apple recently cut production of the iPad in order to supply the iPhone 13, but even this strategy could not stop production. The company initially predicted that it would sell about 95 million iPhone 13s by 2021, but that forecast was reduced to 83-85 million units in early December.
According to the Nikkei, production of the iPhone 13 in September and October was 20% less than Apple’s original target. On the other hand, the production of the iPad was only 50% of Apple’s program for this period. The production conditions of the previous iPhone models were not better and were 25% lower than expected.
Elsewhere in the report, it is said that Apple’s production lines have been shut down for a number of reasons, including quarantine in Malaysia and Vietnam, unexpected power outages in China, shortages of parts and supply chain bottlenecks.