No iPhones for Christmas? Apple warns of delivery bottlenecks

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Apple is currently warning of delivery delays for its iPhone 14 models. Due to corona restrictions in a plant of the Apple supplier Foxconn in China, production is currently affected. This could have significant consequences for the Christmas business.

The US company Apple expects fewer deliveries and delays in its iPhone 14 models in the coming weeks. Due to restrictions and a corona outbreak at a plant belonging to the Chinese supplier Foxconn, the company had to reduce its production.

That comes from a report by the news agency Reuters out. Accordingly, the expected sales in the upcoming Christmas business are likely to be significantly lower. The exact extent is currently unclear. However, Apple said: “The system is currently working at a significantly reduced capacity”

Apple expects lower iPhone 14 deliveries

So far, the company has been largely spared from rising inflation and high interest rates. But now the US group has fallen victim to the Chinese zero-Covid policy – ​​at the worst possible time. A statement goes on to say:

We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated.

Customers have to put up with longer waiting times

The Foxconn plant in Zhengzhou produces around half of all iPhones for the global market. Around 200,000 to 300,000 people work there. It is not yet clear how extensive the corona outbreak will be. However, Apple explained that customers should expect longer waiting times.

Meanwhile, Foxconn wants to ramp up production again as soon as possible. To this end, the company is working closely with the Chinese government. Due to China’s strict zero-Covid strategy, the authorities had previously imposed a seven-day lockdown – including in the area where the Foxconn plant is located.

Because of the corona outbreak, workers are said to have been locked in their dormitories. The medical care on site is catastrophic. Videos are circulating online showing hundreds of people fleeing the factory.

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Source: https://www.basicthinking.de/blog/2022/11/07/keine-iphones-zu-weihnachten-apple-warnt-vor-lieferengpaessen/

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