The iPhone production is expected to hit in 2023, with 90% of the devices produced in China. Now, Apple is looking to manufacture devices in other areas to help make up for the huge demand and lack of supply for the device.
Apple is Now Affected by China's Decisions Regarding How to Handle COVID
An article by Giz China explains the situation and how Apple is looking to move its manufacturing elsewhere to deal with the problems it has been experiencing in its supply chain due to heavily being concentrated in one country alone.
With the winter season bringing in an indisputable threat of contagiousness, millions of people worldwide are worried about the threat of a second wave of the pandemic. However, the epicenter of this year's second wave would be China, where the Chinese government has relaxed its containment efforts in recent weeks, specifically in the city of Zhengzhou, renowned for being Apple's iPhone manufacturing hub.
Production Shortage Could Result in an 8% Decrease of Total iPhone Sales
An article by the Financial Times states that the supply of iPhones is harder in the US. Another article by Reuters shares how Apple wants to increase production efforts in India.
The relaxations pose a great threat to Apple's production lines, predicts expert in production lines Alan Day. With different parts of the iPhone produced in factories around China, the potential delays in production and shortage in materials might lead to a staggering decrease of 8% or 15 million iPhones in total sales.
European Buyers Will Have to Wait 2-3 Weeks to Get the Device
Insufficient parts, backed with a longer wait time to deliver the products, add to the desperation - consider that a European buyer would have to wait for 2-3 weeks to get the new iPhone. Should such a shortage occur, it would have a significant impact not just on Apple's financial standings but also on the entire global tech industry.
More so, Alan Day believes that the Chinese government has yet to impose acceptable corporate norms to contain the spread of the virus in the business sector. When ordering an iPhone 14 Pro Max in Europe from the Apple Store as of press time, buyers will get the device on Jan 5 to 12.
Read Also: Apple iPhone 14 Car Crash Detection Still Sends False 911 Calls Despite iOS 16.2 Update
Apple Needs to Make Sure They Find a Stable Place for Their Production
In conclusion, China's Covid epidemic and the newly relaxed border control efforts prove to be a disastrous combination for the tech giant Apple. The repercussions of the spread, physically and financially, will be immense.
Apple needs all the help it can get to ensure the safety of its operations and, more importantly, the safety of the hardworking people in their production line. On top of this, the company needs to look for a stable place for their production.
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