Supply chain constraints have caused Apple to suspend production of its iPhone series for the first time since the pandemic began in 2020. According to Nikkei, Apple has been forced to shut down the production line for the first time in more than ten years “for several days” due to supply chain constraints and China’s continuous power restrictions. According to “several sources with knowledge of the matter,” this is the case.
According to Nikkei, this week is typically when Apple’s manufacturing ramps up to meet worldwide demand for the holiday shopping season, but instead of more shifts and 24-hour production schedules, employees have been given time off.
According to one supply chain manager, “due to limited components and chips, it made no sense to work overtime on holidays and pay extra for front-line workers […] Nothing like this has ever happened before. In the past, the Chinese Golden Week was always the busiest time of year, with all of the assemblers ramping up for production.”
In October, Apple reduced its iPhone 13 production expectations. Even in November, Apple had to give up iPad shipments in order to keep iPhone 13 production going, yet it wasn’t enough to keep production from stalling. Apple’s initial objective was to produce 95 million iPhone 13 models in 2021, but by the beginning of December, that figure had decreased to roughly 83-85 million.
According to Nikkei, production of iPhone 13 models fell short of 20% of its initial targets in September and October. In the meantime, iPad production only reached half of the volume projected in the same time span. Production of older iPhones fell short by 25%, and the situation didn’t improve when November got around.
The complete Nikkei report delves deeper into the specific suppliers of iPhone 13 components and the reasons for their delays, so be sure to check it out at the Source link. Delays are caused by a variety of factors, including Malaysian and Vietnamese lockdown measures, unforeseen power constraints in China, shortages, production bottlenecks, increased component lead times, and more.
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