Nikkei: Apple has halted iPhone production for the first time in over a decade

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For the first time since the start of the pandemic in 2020, supply chain constraints have forced Apple to stop production of its iPhone line. According to a report by Nikkei, Apple had to shut down the assembly line for the first time in over 10 years “for several days” due to supply chain limitations and China’s current power restriction. This is according to “several sources with knowledge of the situation”.

Nikkei explains that this week is normally when Apple’s production shifts overtime to meet global demand for the holiday season, but instead of workers getting extra shifts and 24-hour production schedules, the workers took time off.

Apple's iPhone 13 range
Apple’s iPhone 13 range

A supply chain manager tells Nikkei “Due to the limited number of components and chips, it made no sense to work overtime on holidays and give frontline workers extra pay. […] This has never happened before. The Chinese gold holidays in the past were always the most eventful time when all the assemblers prepared for production. “

Apple already reduced his iPhone 13 production projections in October. Even in November, Apple had to give up iPad shipments to keep the production of the iPhone 13 going and that was still not enough to prevent production from stopping. Apple’s original goal was to make 95 million iPhone 13 models by 2021, but that number fell to around 83-85 million in early December.

The iPad mini (2021) was announced at the same stage as the iPhone 13 range
The iPad mini (2021) was announced at the same stage as the iPhone 13 range

Production of iPhone 13 models in September and October fell short of 20% of initial targets according to Nikkei. Meanwhile, iPad production only reached 50% of the expected volume in the same time frame. The production of older iPhones fell below 25%, and the situation was no better once November arrived.

The full report of Nikkei offers a more in-depth dive into the individual iPhone 13 component vendors and the reason for their delay, so be sure to check it out on the Source link. The delays are caused by a multitude of reasons including Malaysian and Vietnamese lockdowns, unexpected power restrictions in China, shortages, production bottlenecks, increased component delivery times, and more. .

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Shovon Ahmed
Shovon Ahmedhttps://rawmarketer.com
Shovon Ahmed is a Bangladeshi Digital Marketer, Entrepreneur & founder of Raw Marketer.

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