According to reports, Apple had to stop the production of iPhone and iPad for several days due to the shortage of device components. The shortage had forced a cease in operations in Apple’s factories, in the process halting iPhone production for the first time in a decade during China’s Golden week.
The move which is unprecedented and shocking is the first time in 10 years, despite high expectations of higher output. Apple despite its huge purchasing power has not been left out of the supply chain shortages that have bedevilled the world tech firms.
Apple had previously reduced its iPhone 13 production plans for the year and cut back on its iPad production to allocate more parts for its mobile flagship devices.
The halt in iPhone production is coming after Apple’s production of iPhone 13 series was made public in October, and with Apple projected to produce 90 million new iPhone units in the last three months of 2021, a new projection as a result of the components shortage had pegged it down to as low as 10 million units.
The COVID-19 pandemic despite bringing PC usage, smartphone awareness and sales as a result of the lockdown, has vastly affected the production of chips and device components, and for the first time since the global pandemic began, had a direct impact on Apple’s supply chain and device production. This may be caused by Apple’s inability to secure supplies for its units well in advance, more of not making hay while the sun shines. With disruption lingering on, the company could not maintain a constant supply of components, leading to this shutdown.
The report additionally highlighted that in terms of manufacturing and production, this supply constraint period is usually a very productive one for Apple, with the Golden Week holidays that came up early October seeing Foxconn, Pegatron and other Apple suppliers’ ramp up production to 24 hours per day. But it appears 2021 is not following the trend as it appears to be the direct opposite.
Apple suppliers in a bid to control the expenditure of their work force, had to gave the workers some time off during that timeframe rather than giving them overtime.
Apple had earlier this month forecasted a slow supply demand for the year 2022 and it appears the forecast is coming early with this development.