March 28, 2023

Dubai Week

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Apple surrenders .. Stops production of iPhone and iPad in peak demand

Apple surrenders .. Stops production of iPhone and iPad in peak demand

According to the Nikkei Asian Review, Apple was forced to suspend production of the iPhone and iPad for several days as it began to operate at full speed.

Despite the huge purchasing power, it was clear that the company was not getting rid of the global supply chain shortage.

AndThe technology company had earlier slashed production targets for the iPhone 13 this year. It also had to cut production of the iPad to dedicate more components to its flagship mobile devices.

But this is the first time in a decade that the company has closed its factories during China’s Golden Week.

Apple’s factories increase production during the Chinese holidays, which usually take place in early October. It operates 24 hours a day, so you can keep track of your holiday shopping needs.

But this year, it is said to have given holidays to its workers instead. The supply chain manager told the newspaper that when there was a very low number of spare parts and chips, there was no point in giving workers extra time for holiday work.

As a result, those considering a new iPad or iPhone as a gift during the year-end holidays may not get the device on time.

The paper says supply chain problems began long before the epidemic. It was then that Chinese companies banned by the United States hoarded shares to escape the ban.

However, the corona virus shutdown implemented in Malaysia and Vietnam due to delta variation severely affected the production of many electrical components and chips.

In many cases the disruption was caused by a lack of the most expensive components of the device. But due to cheaper peripherals.

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In terms of raw materials, component manufacturers that do not have the same purchasing power are lagging behind in the list.

For example, for the iPhone 13 Pro Max, the reason for the delay is related to smaller devices that cost only a few cents.

Apple chief Tim Cook has previously said that the company lost $ 6 billion in the quarter ended September due to supply chain disruptions. He also believes it could lose more in the last quarter of the year.

It remains to be seen whether the company will continue to experience the same level of demand while having the components needed to manufacture its devices.

The Nikkei Asian Review also told suppliers that demand for the iPhone 13 continues to rise.

The company warned suppliers that demand for its largest source of revenue was weakening ahead of the holiday, according to an earlier Bloomberg report.