The main reasons: the lack of chips, the various restrictions related to the epidemic and the restrictions adopted by the countries where Appe has production facilities.
We’ve written a lot about the big problems with supply chains around the world and it’s still up for grabs. The effects have been felt by the entire tech industry, and Apple has been hit harder than we can imagine. In October, they had to stop producing iPhone and iPad for a while.
This is a huge problem, of course, as Apple first halted production over a decade ago. Moreover, it is precisely at the time when demand will increase production rather than contraction. This was all reported to Nikkei, who delved into the situation and claimed this was happening at Apple in early October.
That said, this is the period when Apple usually makes the iPhone 24 hours a day. That is, a few days after the release of new models, holidays are practically approaching all over the world, and the demand for Apple devices is increasing at that time.
What is the reason for stopping production?
It is supposed to be a combination of several problems or. Factors, including the lack of chips as well as the restriction of energy use in China. These restrictions were the result of the emission limit being exceeded, as the price of coal increased. The Chinese authorities drew attention to the restrictions a few days before their entry into force.
These restrictions have affected the work of many Apple vendors in more than 150 manufacturers. However, regional problems were not limited to China, as production in Vietnam and Malaysia was also severely affected.
All of the above brought production to a halt, and Apple produced 20% fewer iPhone 13 devices than originally planned. Even though they tried to resolve the situation by transferring resources from other devices, they failed to resolve the situation. Precisely because of these bailouts, Apple also produced 50% fewer iPads than planned and 25% fewer older iPhones.
Analysis: Things are getting better, but there are still problems
For Apple, the situation was certainly devastating in early October, and since then, production has regained momentum. Nikkei reports that suppliers have been instructed to speed up production again in November, December and January.
Still, Apple has a lot to make up for. Depending on the region and model we want, there is a good chance that we will have to wait on the iPhone.
Things will probably calm down a bit with the New Year coming, but the lack of chips remains a serious problem. Not to mention the effects of the epidemic. If this is Apple’s first shutdown in over a decade, it could be much sooner.