In this article, we’ll see that Why Apple stop the production of the iPhone and iPad & How it’ll affect the global electronics market.
If you are an Apple fan then there is bad news for you that iPhone Production is Stopped. Apple has had to stop the assembly line for the first time in more than 10 years for several days.
According to reports, due to the shutdown of production, the production of the company’s latest phone, the iPhone 13 series, has also come to a standstill. While Apple had earlier expected to produce 90 million new iPhone units in the last three months of the year, the projection cut this number down by as many as 10 million units. Let us know what is this whole matter.
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Why did Apple stop the production of the iPhone and iPad?
The main reason behind the halt of the apple assembly line are following:-
- Unexpected China’s ongoing power restriction.
- The global shortage of semiconductor chips.
- Supply chain constraints due to pandemic.
- Shortage of components used in their manufacturing.
These types of issues affected the entire tech industry this year. In reality, Apple pays very high to its supplier & puts the very advanced order for the components. But still, in this time, apple gets hit by the hard situations.
This is when Apple’s suppliers typically ramp iPhone production up to 24 hours a day, as it comes shortly after new models have launched, and it’s the start of the holiday period (with Golden Week in China followed shortly by Christmas in much of the world), so demand is at its highest.
How production issues affect the global electronics market
These restrictions affected multiple Apple suppliers operating more than 150 manufacturing facilities. And the regional problems weren’t limited to China, as lockdowns in Vietnam and Malaysia also affected iPhone production.
So it’s all going to affect the demand & supply in the global label. If you are an Apple fan & looking to buy a new Apple product then you’ll see some price hikes here. It’s all just going to hit the end level consumer.
If you don’t use the apple product then it still going to affect you. As apple is the highest bidder in the market & they are not getting the supply then you can understand the situation of small players in the market.
It’s one example is carl Pei, Where he stated that “The major competitor was attacking the Nothing brand in the supply chain by trying to block the company’s access to important components needed to build the ear (1) earbuds by pacing the very high order”
And this all is going to is kill the competition & Big Hikes in prices. I hope you got my point.
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