iPhone production decline: this is how Apple solves its problem in China

Production decline in iPhones
This is how Apple solves its problem in China

By Jannik Teller
11/27/2022, 6:17 PM

Anyone hoping to get the iPhone 14 Pro under the Christmas tree will be disappointed. Apple’s top model won’t be available before January 2nd. There are also bottlenecks with MacBooks. Zero chaos in the supplier is to blame in China. Apple adapts. Consumers can too.

If you want to give away an iPhone for Christmas, you have to come up with something this year. The reason is connectivity problems at the world’s second largest cell phone maker, Apple. iPhone 14 Pro, the classic, will be available again in the Apple Store from January 2. And it’s the same with other retailers.

But where do the problems that plague Apple in the important business of Christmas come from? The short answer is: China – the country where Apple produces most of its products. The Foxconn supplier in particular is causing problems for Californians here, or more precisely: the Chinese government’s strict no-covid policy.

The production deficit appears to be at 30 percent

Recently, there have been mass protests against staff “barracks” – and pictures of fleeing protesters have spread around the world. In this way, Apple acknowledged delivery problems for the first time in three weeks. The factory in Zhengzhou, China, is currently operating at a “reduced capacity”.

The result: “Our customers will have to accept longer waiting times to receive their new products,” said the manufacturer. According to Reuters, the production deficit was about 30 percent until recently. Apple has so far left an unanswered question about how this will affect Germany so far.

There were riots again this week. Videos on social media on Wednesday showed hundreds of Foxconn employees breaking down barriers and clashing with people in hazmat suits, according to Reuters. Police officers with batons and plastic shields tried to push people back. Clashes ensued. You can also see how some workers were lying on the ground, apparently injured.

custom strategy

Thousands of employees left the factory now. Foxconn even promised employees higher wages if they chose to return. But the procedure hasn’t really been successful so far. And the fewer people that work at Foxconn, the fewer iPhones are made.

This is another reason why Apple is already working on the strategy: since capabilities are limited, models with high demand, such as the iPhone 14 Pro, are mainly produced. Here, Apple increased production from 50 to 60 percent of the total – also because the Pro version has a higher margin. The lesser-known iPhone 14 Plus, which is a larger version of the iPhone 14, is made less, but is still available.

In general, if you still want to put a new iPhone or MacBook under the Christmas tree for Christmas, you should keep an eye on the cheaper models. For example, the standard iPhone 14 or its predecessor, the iPhone 13. Apple often delivers them the next day.

This article first appeared on Capital.de.