Nikkei: Apple has halted iPhone production for the first time in more than a decade - Gadgets Price
Nikkei: Apple has halted iPhone production for the first time in more than a decade

For the first time since the pandemic began in 2020, supply chain restrictions have forced Apple to halt production of its iPhone range. According to a report by NikkeiApple has had to shut down the assembly line “for several days” for the first time in more than 10 years due to supply chain restrictions and ongoing power cuts in China. This according to “several sources with expertise”.

Nikkei explains that this week is normally the time when Apple’s production works overtime to meet global demand for the Christmas shopping season, but instead of employees getting extra shifts and round-the-clock production schedules, employees have been given time off.

Apple's iPhone 13 lineup
Apple’s iPhone 13 lineup

A supply chain manager explains: Nikkei “Because of the limited components and chips, there was no point in working overtime on holidays and paying frontline workers extra […] That has never happened before. The Chinese Golden Day in the past was always the busiest time when all the mechanics were getting ready for production.”

Apple already lowered production forecasts for the iPhone 13 in October. Even in November, Apple had to give up iPad deliveries to keep production of the iPhone 13, and that still wasn’t enough to keep production from shutting down. Apple’s original goal was to make 95 million iPhone 13 models by 2021, but that number dropped to about 83-85 million by early December.

The iPad mini (2021) was announced at the same stage as the iPhone 13 lineup
The iPad mini (2021) was announced at the same stage as the iPhone 13 lineup

Production of iPhone 13 models in September and October did not meet 20% of original targets according to Nikkei. Meanwhile, iPad production only reached 50% of projected volume in the same time frame. Production of older iPhones fell 25%, and the situation was no better when November came around.

The full report of Nikkei offers a deeper dive into the individual iPhone 13 component suppliers and the reason for their delay, so be sure to check it out at the Source link. Delays are caused by a myriad of reasons, including Malaysian and Vietnamese lockdown measures, unexpected power cuts in China, shortages, manufacturing bottlenecks, longer component lead times and more.

Source

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