New report sheds light on Apple's supply chain issues, highlights pre-pandemic problems

Posted:
in iPhone
Apple continues to fall short of production goals rolling into the holiday season, citing supply chain restrictions and power regulations in China -- but problems likely began well before the pandemic.




In a time when Apple suppliers typically begin ramping up production to meet holiday demand, most have decreased or ceased production. Employees who often see overtime instead found themselves with time off.

Nikkei Asia has released a new report showing how ongoing supply chain bottlenecks and power restrictions in China have forced Foxconn, Pegatron, and other Apple suppliers to produce less, not more.

"Due to limited components and chips, it made no sense to work overtime on holidays and give extra pay for front-line workers," a supply chain manager told Nikkei Asia.

"That has never happened before. The Chinese golden holiday in the past was always the most hustling time when all of the assemblers were gearing up for production."

Nikkei Asia interviewed nearly two dozen industry executives in hopes of piecing together the story. As it turns out, the pandemic was only one part of the story.

According to Nikkei Asia, many of the problems predate COVID-19, originating in the trade wars between U.S. and China started under the Trump administration.

Reporters also learned that Apple had done its best to mitigate problems. The company reallocated key supplies from the iPhone 12, iPhone SE, and iPads for the iPhone 13 lineup.

However, the iPhone 13 production still fell 20% short of Apple's goal.

Because of the resources allocated, iPad production was only half of what was planned. Production of previous generations of iPhones dropped 25%, multiple sources told Nikkei Asia.

Apple had been expected to deliver 90 million iPhone 13 devices before the end of 2021. The number has already been revised once, cutting production targets by up to 10 million units because of chip shortages.

Bloomberg recently reported that Apple told suppliers that production goals could be lowered even further, as demand for the iPhone 13 has slowed.

However, the article maintains that this isn't true. According to one of Nikkei Asia's resources, Apple constantly reassured them that demand has remained high and that orders were being postponed due to supply constraints.

Read on AppleInsider

Comments

  • Reply 1 of 10
    lkrupplkrupp Posts: 9,732member
    Reports, guesses, magic eight-ball predictions, reading tea leaves, NO FATCS OR ACTUAL DATA. And people make investment decisions on this shit?
    jas99fred1watto_cobra
  • Reply 2 of 10
    BosaBosa Posts: 107member
    This “report” makes no sense, is it from CNN lol?

    Pre - Pandemic? Trump Trade war ? Lol, didn’t  Apple have record breaking quarters after the Trade War started and pandemic?

    if people are going to do hit pieces, at least be better and more convincing lol 
    edited December 2021 jas99
  • Reply 3 of 10
    Taiwan has become the largest beneficiary of US launched trade war with China. 2020 Taiwan has a trade surplus of $140.5 billion wrt to mainland China. The first 11 months of this year the trade surplus has ballooned to $156.7B. The tariffs have forced many US companies to out source components to Taiwan suppliers. Since Taiwan population is only 1/60 of mainland China. Taiwan may not be able to meet the demands or slow to fulfill the orders. 
    chaickabadmonkwatto_cobra
  • Reply 4 of 10
    BosaBosa Posts: 107member
    Google “Nikkei Asia Apple”

    look at all the articles these people have posted about Apple last 4 years, everything is a hit piece

    probably paid by Samsung
    jas99watto_cobra
  • Reply 5 of 10
    BosaBosa Posts: 107member
    Taiwan has become the largest beneficiary of US launched trade war with China. 2020 Taiwan has a trade surplus of $140.5 billion wrt to mainland China. The first 11 months of this year the trade surplus has ballooned to $156.7B. The tariffs have forced many US companies to out source components to Taiwan suppliers. Since Taiwan population is only 1/60 of mainland China. Taiwan may not be able to meet the demands or slow to fulfill the orders. 
    Yes and no.

    True Taiwan is large beneficiary last 2 years  but most of the suppliers even though they are factories in China, they are a Taiwanese companies like Foxconn, pegatron.

    now many have re opened factories I. Taiwan due to pandemic but I don’t believe the big ones they supply Apple have closed any factories in China 
  • Reply 6 of 10
    Taiwan has become the largest beneficiary of US launched trade war with China. 2020 Taiwan has a trade surplus of $140.5 billion wrt to mainland China. The first 11 months of this year the trade surplus has ballooned to $156.7B. The tariffs have forced many US companies to out source components to Taiwan suppliers. Since Taiwan population is only 1/60 of mainland China. Taiwan may not be able to meet the demands or slow to fulfill the orders. 
    @Higher Cost too
    waveparticle
  • Reply 7 of 10
    I have never commented on any article but this one forced me to.  This article makes no logical sense and seems to be nothing but a click bait attempt and a poor one at that.  What a wasteful read. 
    baconstangjas99watto_cobra
  • Reply 8 of 10
    BosaBosa Posts: 107member
    I have never commented on any article but this one forced me to.  This article makes no logical sense and seems to be nothing but a click bait attempt and a poor one at that.  What a wasteful read. 
    Goggle “Nikkei Asia Apple”, this outfit literally has never published anything positive on Apple.

    notnsure if it’s paid by Samsung or other Apple competitors in Taiwan 
    jas99watto_cobra
  • Reply 9 of 10
    I usually stop after I see "Bloomberg" as a asource.
    https://www.macworld.com/article/557837/macalope-iphone-demand-cuts.html
    Bosajas99DoctorQwatto_cobra
  • Reply 10 of 10
    BosaBosa Posts: 107member
    I usually stop after I see "Bloomberg" as a asource.
    https://www.macworld.com/article/557837/macalope-iphone-demand-cuts.html
    Bloomberg is where that moron Gurman works right?
    DoctorQ
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