90% of the iPhones are anticipated to be produced in China by the year 2023. Apple is now looking to produce devices in other locations in an effort to balance out the device’s high demand and scarcity.
Table of Contents
- 1 China’s decisions regarding how to handle COVID are now having an impact on Apple.
- 2 A 8% drop in overall iPhone sales could result from a production shortfall.
- 3 European customers must wait two to three weeks to receive the device.
- 4 Apple Must Ensure That They Locate a Stable Location for Their Production
China’s decisions regarding how to handle COVID are now having an impact on Apple.
Giz China’s explanation of the situation and Apple’s plans to relocate its manufacturing overseas to address supply chain issues stemming from the company’s extreme concentration in one nation explains the situation.
A second wave of the pandemic is a concern for millions of people around the world as the winter season brings with it an undeniable threat of contagiousness. China, where the Chinese government has recently loosened its containment measures, specifically in the city of Zhengzhou, which is well-known for being Apple’s iPhone manufacturing hub, would be the centre of this year’s second wave.
A 8% drop in overall iPhone sales could result from a production shortfall.
According to a Financial Times article, the US has a more difficult time getting iPhones. Another Reuters article details Apple’s plans to step up its manufacturing efforts in India.
Alan Day, a production line expert, believes that the relaxations pose a serious threat to Apple’s production lines. The iPhone is manufactured in factories all over China, so any production delays or material shortages could result in a startling drop in sales of 8%, or 15 million iPhones.
European customers must wait two to three weeks to receive the device.
A buyer in Europe would have to wait for the new iPhone for two to three weeks due to insufficient parts and a longer delivery time, which adds to the desperation. If such a shortage materialised, it would have a profound effect on not only Apple’s financial situation but also the entire global tech industry.
Alan Day is even more of the opinion that the Chinese government has not yet imposed appropriate corporate norms to stop the virus’s spread among businesses. At the time of publication, customers who order an iPhone 14 Pro Max from the Apple Store in Europe will receive the device between January 5 and January 12.
Apple Must Ensure That They Locate a Stable Location for Their Production
In conclusion, the Covid epidemic in China and the recently loosened border control measures turn out to be a bad mix for the tech giant Apple. The spread will have significant physical and monetary effects.
To ensure the security of its operations and, more importantly, the security of the devoted employees on their production line, Apple needs all the assistance it can get. Additionally, the business needs to find a reliable location for their manufacturing.