Apple is ‘forced to halt its 24-hour iPhone production in China and give employees days off’ during its busiest time of year due to supply chain issues: Tech giant will be 15 MILLION units shy of its 230 million goal for the holidays 

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  • A report says that Apple halted iPhone production in China for several days in October
  • It’s usually the tech giant’s busy season to meet holiday demand
  • Shutdown means 20% drop in iPhones for the year
  • Apple will also be 15 million units shy of hitting its 230 million target for 2021

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Apple was forced to halt production of its iPhone for several days during a time period when the tech giant typically ramped up to meet holiday demand, Nikkei Asia,

The report said the shutdown was due to chip shortages, supply chain bottlenecks and China’s restrictions on the use of electricity.

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Sources told the Nikkei that production stopped in early October as most companies in China approached Golden Week, which marks the end of dynastic rule and the march towards democracy, and the closures allowed people to enjoy the festivities. allowed to travel across the country.

Although Apple uses this time to ramp up production to 24 hours and provide overtime to employees — but this year the tech giant shut down for the first time in a decade.

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Shortages and production halts mean Apple will be 15 million units shy of making 230 million iPhones in 2021.

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The report said the shutdown was due to chip shortages, supply chain bottlenecks and China’s restrictions on the use of electricity. Sources say production stopped in early October when most companies in China closed for Golden Week

A supply chain manager told Nikkei Asia: ‘Due to limited components and chips, there is no point working overtime on holidays and paying extra wages for front-line workers.

‘This has never happened before. In the past the Chinese Golden Holiday was always the busiest time when all the assemblers were gearing up for production.’

While production ramped up in November, it wasn’t enough to propel Apple to its target of 230 million smartphones.

Component shortages for the devices saw Apple expect 50 percent lower production for the iPhone 13, while older iPhones saw a 25 percent drop in production.

Shortages and production halts mean Apple will be 15 million units shy of making 230 million iPhones in 2021

Shortages and production halts mean Apple will be 15 million units shy of making 230 million iPhones in 2021

An executive at a top Apple supplier told Nikkei, ‘Even if you have 99% of the components ready at hand, if you lack one or two or three components, it is not possible to start the final assembly of the product. .

A separate report surfaced last week which claimed that Apple cut production of its new iPhone 13 due to lack of customer demand.

The reason for the slowdown is that customers do not have to wait for long for their devices due to supply chain constraints and chip shortage.

Others are said to be holding out for the iPhone 14. It will debut in the fall of 2022, and will likely be a far more dramatic update than the 13, which is a modified version of the 2020 iPhone 12.

Heavy inflation — which currently stands at 6.2 percent — has also frightened many Americans, who have decided to save rather than splurge on luxuries.

Due to global chip shortages, Apple had reportedly cut its target for the year by at least 10 million units from its target of 90 million.

He had hoped to increase production again next year due to the current global supply chain crisis.

However, the company has informed sellers that the chances of an order are slim.

Expected sales for the upcoming holiday season were expected to increase six percent during Apple’s last quarter to $117.9 billion. bloomberg news,

Products like the iPhone 13, which starts at $699, as well as new versions of AirPods and a redesigned MacBook Pro, were expected to be the most sought after.

The iPhone has always been considered one of Apple’s most important products because it accounted for nearly half of their $365.8 billion revenue last year.

Apple also offered discount programs and cheap upgrades to try and drive demand for the iPhone 13, but that’s not enough to entice consumers to buy the new smartphone.

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