Highlights:
- Apple’s most in-demand phones are going to be impacted by production cutbacks.
- The workers have pushed back against the impact of the Covid shutdown.
- Due to the chaos at Apple’s production factory in China, the company will be forced to write down 6 million iPhone Pros.
According to an individual involved with assembly processes, unrest at Apple Inc.’s primary manufacturing centre of Zhengzhou is anticipated to result in a production deficit of up to 6 million iPhone Pro units this year. This information was provided by the Zhengzhou facility.
Earlier in the month, Apple said that it will reduce its production goal for the iPhone 14 by 3 million units owing to interruptions caused by Covid at the Foxconn facility. According to the source, that amount has now been lowered by double to account for the new information.
EXCLUSIVE: Turmoil at Apple’s key manufacturing hub of Zhengzhou is likely to result in a production shortfall of close to 6 million iPhone Pro units this yearhttps://t.co/78JW5s83U7
— Bloomberg (@business) November 28, 2022The plant owned by Foxconn is responsible for the production of the great majority of iPhone 14 Pro and Pro Max smartphones, which are now Apple’s most in-demand mobile phones. The desire for these flagship smartphones has helped to compensate for the declining sales of the standard iPhone 14 models.
According to the individual who requested not to be identified since the information is confidential, the situation inside the factory is still fluid, and the projection of lost output might alter at any time.
A great deal will rely on how soon the Taiwanese business that controls the factory, Foxconn Technology Group, can bring personnel back to the manufacturing lines after the violent demonstrations over the limits imposed by Covid. It’s possible that output may be delayed much more if lockdowns persist over the next several weeks.
Apple published a statement at the beginning of this month indicating a slowdown in deliveries for the Pro model iPhones because the company expected that China’s anti-Covid policies would cause an interruption in the supply chain.
The effect on manufacturing at the Foxconn facility was blamed in the statement on the limits placed on Covid-19. The statement also warned consumers that they should expect lengthier wait periods if they choose to acquire high-end models.
The waiting period for an iPhone 14 Pro or Pro Max is now shown on Apple’s website as precisely one month. Most Apple shops allow customers to receive the more affordable iPhone 14 and iPhone 14 Plus on the same day they place their order.
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Violence erupted last week between security staff and employees at the Foxconn facility over payment delays and bad working conditions. The workers were angry about both of these issues. Several employees have expressed their concern that they will not be eligible to earn the signing bonuses that were promised to them by the manufacturer if they do not remain employed there until March.
After hundreds of employees departed the manufacturing campus in October in fear of the effect that stricter Covid measures would have, the new recruits were enticed to join the company by the prospect of greater earnings and a compensation package.
Foxconn finally issued an apology and explained the difficulties by pointing the finger at a technological glitch in the company’s recruiting procedure as well as a compensation payment of $1,400 to employees who chose to leave the facility as damage control.
