Supply Chain Issues Briefly Shut iPhone Factories in China

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If you happen to’re experiencing longer than normal wait occasions for the supply of your new iPhone 13, it’s protected to pin the blame on the huge provide chain constraints Apple continues to face in China. Whereas it was already identified that Apple had a troublesome time assembly its 2021 iPhone manufacturing targets, a brand new report by Nikkei-Asia reveals the true extent of the issue.

In response to the report, for the primary time in over a decade, Apple was pressured to halt the manufacturing of iPhones at a number of of its contractor-operated crops in China in October 2021. Sadly for Apple, these measures have been taken at simply concerning the time the corporate normally ramps up manufacturing to cater to the spike in demand for iPhones within the November-December interval.

A provide chain supervisor at one of many crops revealed that these manufacturing amenities normally transfer to a 24-hour manufacturing schedule in October, with staff getting further shifts. This time round, nevertheless, staff have been getting day off to coincide with the Chinese language golden vacation season. He added that it made no sense for them to work time beyond regulation when chips and elements have been briefly provide. The employees would even have needed to been paid further for the time beyond regulation hours they might have put in. He added that this has by no means occurred up to now.

The report cites a number of causes for the availability chain disaster, primarily surprising energy restrictions imposed by China following an vitality disaster in September and October. Whereas Apple didn’t face points sourcing essential elements like processors and modems, it’s the supply of smaller elements which have led to the present disaster. Among the elements which might be briefly provide embody energy administration chips from Texas Devices, transceivers from Nexperia, and connectivity chips from Broadcom. Many of those elements are made in international locations like Malaysia and Vietnam, which have additionally been affected by COVID-19 induced lockdowns.

These constraints led to Apple reducing its iPhone manufacturing projections for 2021. The corporate initially anticipated to make round 95 million iPhones in 2021, which has now been lowered to round 83 million to 85 million models. Apple has already indicated that the present provide chain disaster ought to taper quickly, and manufacturing exercise must be again to regular by the primary quarter of 2022.

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