IPhone production reportedly halted in ‘Christmas nightmare’ scenario caused by shortage of parts

As Apple’s ever-important holiday shopping season continues, the company is facing what the new Nikkei Asia report describes as a “nightmare before Christmas”. According to the report, Apple is stepping up pressure on suppliers due to a shortage of iPhones and iPads affecting delivery times.

Today’s report shows that Apple missed the targets for the production of the iPhone 13 in September and October by about 20%. In addition, Apple was reportedly forced to reduce its overall production target of the iPhone 13 to between 83 and 85 million, which is less than the original target of 95 million units.

But the shortages aren’t just affecting Apple’s latest and best iPhone 13 line. The report explains that production forecasts for older generations of iPhones have also fallen by about 25% in recent months. As such, Apple is also missing about 15 million units for its goal of producing a total of 230 million iPhones this year, the report said.

In fact, Nikkei says that Apple actually stopped assembling the iPhone and iPad for a few days in October, something that hasn’t been done for more than a decade.

For the first time in more than a decade, the assembly of the iPhone and iPad was suspended for several days due to restrictions in the supply and use chain in China, several sources who know the situation told Nikkei.

“Due to limited components and chips, it didn’t make sense to work overtime during the holidays and give extra pay to front-line workers,” a involved supply chain manager told Nikkei Asia. “It simply came to our notice then. China’s golden holiday in the past has always been the most difficult time for all installers to prepare for production. ”

The report also said that shortages affecting iPhone, iPad and Mac production are related to peripheral components, including “Texas Instruments power management chips and Nexperia transceivers, as well as Broadcom connection chips.”

But despite shortages and missed targets, Apple continues to put pressure on its partners to accelerate iPhone development in December and January. The report said Apple told suppliers to “re-accelerate iPhone production for November, December and January.”

Today’s Nikkei report comes after Apple reportedly warned vendors to cut demand for the iPhone 13 due to shortages.

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Naveen Kumar

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