Delivery problems with the iPhone announced: Apple fears shortages at Christmas
The corona virus in China is causing problems for Apple’s Christmas business: the main iPhone plant in Zhengzhou, China, is working with “significantly reduced capacity”. The result: fewer devices for the year-end spurt and a message to investors.
In China, the corona virus continues to determine people’s everyday lives. Due to the government’s strict zero-Covid policy, entire districts are sealed off even in very few cases, and the country’s economy suffers greatly as a result. Apple has also been directly affected for days – because a plant of what is probably the most important supplier Foxconn has to operate in lockdown mode, which poses major problems for employees – and severely restricts the workforce (find out more here).
Delivery time already in mid-December
Apple is now forced to inform the company’s investors about the circumstances. In a message it said, “The COVID-19 restrictions are temporarily impacting the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility in Zhengzhou, China. The facility is currently operating at significantly reduced capacity. As has been the case throughout the COVID-19 In the current pandemic, the health and safety of workers in our supply chain is our top priority.”
Below is an explanation of what the “significantly reduced capacity” means for Apple: “We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than previously thought and customers will have longer waits to receive their new products.”
This is not good news for the holiday season and the results of Apple’s strongest quarter in terms of sales. Because the delivery time for most iPhone 14 Pro models is already mid-December – and given the production restrictions, the situation is unlikely to ease. Of course, this also puts pressure on the company’s share price, which has already fallen from 155 US dollars to 136 US dollars since November 2nd. The paper is now more than 25 percent away from the high for the year.
Social media paints a chaotic picture
After it became known that around ten percent of all employees had tested positive for the virus, social media showed people trying to escape from the quarantined plant. So interviewed the “New York Times“For example, the daughter of an employee who walked more than 60 kilometers to escape the lockdown – and an infection. Other, unverifiable, videos are said to show how employees in the plant beg for food and with It is said that conditions have forced “hundreds” to flee their homes – many of whom have no plans to return to Foxconn.
The Zhengzhou location, known as “iPhone City”, is considered the most important hub for global iPhone production. The “New York Times” writes that about half of all iPhones come from there.
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