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Apple still fails to meet production targets during the holiday season, citing supply chain restrictions and supply regulations in China – but the problems probably began long before the pandemic.
At a time when Apple suppliers are usually starting to increase production to meet demand for the holidays, most have reduced or suspended production. Employees who often see overtime instead found themselves in their spare time.
Nikkei Asia has released a new report showing how persistent supply chain bottlenecks and power constraints in China have forced Foxconn, Pegatron and other Apple suppliers to produce less, no more.
“Because of limited components and chips, it didn’t make sense to work overtime on holidays and give extra pay to front-line workers,” said the supply chain manager. Nikkei Asia.
“This has never happened before. China’s golden holiday in the past has always been the most tumultuous time when all the assemblers were preparing for production.”
Nikkei Asia interviewed nearly twenty industry executives in hopes of putting together a story. As it turned out, the pandemic was only one part of the story.
Reporters also learned that Apple did its best to alleviate the problems. The company has reallocated key inventories from the iPhone 12, iPhone SE and iPad to the iPhone 13 line.
However, production of the iPhone 13 still fell 20% below Apple’s target.
Due to the allocated funds, the production of the iPad was only half of what was planned. Production of previous generations of iPhones fell 25%, several sources said Nikkei Asia.
Bloomberg recently reported that Apple told suppliers that production targets could be further reduced as demand for the iPhone 13 slowed.
However, the article claims that this is not true. According to one of Nikkei AsiaApple has constantly assured them that demand is still high and that orders are being delayed due to supply constraints.
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