- This is the first time in over a decade that the production of the iPhone and iPad has been halted.
- The reason is mainly attributed to a shortage in chipsets and other components.
- Instead of giving overtime to workers because of the upcoming festive period, the suppliers of Apple gave them time off.
Supply chain issues have been a continuing feature during the past one and half years owing to the pandemic, and Apple has been no exception. Previously, Apple had managed to secure its own production lines, which didn’t hamper its supply and demand, but not anymore. As the holiday season approaches and is usually the time when Apple’s production goes into overdrive to meet global demand, a new report from Nikkei Asia describes the current period as a “nightmare before Christmas” for Apple.
Some weeks ago, we told you how Apple had to cut down production of iPhone 13 models by 10 million this year, and now the new report from Nikkei suggests that Apple missed targets for iPhone 13 production in September and October by around 20 percent as well. And with the projection coming true, the company is now said to have halted the production of both iPhone and iPad for several days because of the ongoing chip shortage and the Chinese golden holiday in the past.
The report further highlights that the current period is usually very productive for Apple in terms of manufacturing, but because of the Golden Week holidays in the first week of October and the current state of chip shortage, it has been the complete opposite of that. Instead of giving overtime to workers, the suppliers of Apple gave them time off during the said period. A supply chain manager also told the above-mentioned publication that since they had limited resources to work with, they had to stop the production process for a few days. The publication also mentioned that “this has never happened before”.
But despite shortages and missed targets, Apple is still asking its partners such as Foxconn and Pegatron to accelerate iPhone development into December and January, to accommodate sales in the upcoming period. We hope the ongoing issue is resolved by Apple as soon as possible, as the extent of the current dip is expected to be in billions of dollars, and with the rising demand of the chipsets in Apple iPhone and iPad, eventually, the prospective buyers may have to face the brunt of higher pricing from the company.