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Christmas iPhone Sales Will Take Supply Chain Hit

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Christmas iphone sales will take supply chain hit
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.Apple (APPL) is facing extraordinary supply chain challenges linked to the ongoing Covid disruption in China. Last month, Bloomberg reported that Apple could see a 6 million shortfall in iPhone production from disruptions at its key China manufacturing plant, affecting mostly its high-end iPhone 14 Pro and Pro Max devices.

Apple’s problems have been compounded by a shortage of peripheral components, including power management chips from Texas Instruments and transceivers from Nexperia as well as connectivity chips from Broadcom. In addition to iPhones, iPad, and Mac production are also affected.

Apple’s key China manufacturing hub, based in the north east city of Zhengzhou, saw violent protests in November as staff demonstrated against pay and working conditions in the 200,000-person plant run by Taiwan’s Foxconn. The protests came shortly after Apple cautioned that Covid restrictions at the 200,000-person plant would curtail shipments of its higher-end iPhones heading into the holiday season in most of its global markets.

In October, even prior to the added restrictions at Zhengzhou, Apple CEO Tim Cook said that iPhone demand was healthy, but noted that supply constraints for both the 14 Pro and the 14 Pro Max would continue through the holidays.

Tags: AppleiPhoneSupply chain

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