The iPhone 14 suffers from production delays and an increase in inventory shortages after Zhengzhou, China, was laid down. Immediate closing After the Covid-19 outbreak. This development could also affect the continued availability of the iPhone 13.
This outbreak is very worrying news for Apple, as Zhengzhou is home to the world’s largest iPhone production factory. In fact, Apple’s presence in the region is so important that it has been dubbed iPhone City. While Zhengzhou has so far avoided any lockdowns, the Chinese government has just placed the city in a one-week quarantine following the discovery of 14 local cases.
While most of the world has adopted the “Live with Covid” strategy, China is continuing its efforts to completely eradicate the virus. This means that drastic measures such as locking down an entire city after discovering more than a dozen hardly cases are fairly common.
Ironically, this news comes less than 24 hours after it was reported that Apple was taking steps to prevent iPhone 14 shortages by requiring major hardware maker Foxconn to hire iPhone assembly line workers in China earlier than usual. It has reportedly taken the step to ensure its factory in Zhengzhou is operating at full capacity, in order to make up for lost production in other parts of China that have been experiencing shutdowns. However, according to South China Morning NewspaperFoxconn has now had to suspend hiring new workers “until further notice.”
This development demonstrates the importance of Apple’s closed-loop production system, which is deployed in Zhengzhou. This means that most workers already live within the facility’s accommodations, and may stay on site for weeks at a time. Apple hopes that safeguards like these will allow iPhone production to continue, even if Zhengzhou’s lockdown is extended.
However, this development could have a significant impact on both the current supply of the iPhone 13 and the availability of the iPhone 14 later this year. Apple’s factory in Zhengzhou was recovering from the doldrums when other parts of China were in lockdown, but now its largest iPhone production line is directly affected.
It’s not clear at this point what effect the Zhengzhou situation will have, but the recent shutdowns in Shanghai and Kunshan have affected Apple’s production capabilities, affecting the supply of iPads and MacBooks. The last thing the company needed was for iPhone City to also join the list of areas under lockdown. And while the iPhone 14 is unlikely to be pushed out of its 2022 release window in the wake of these shutdowns, the smartphone’s launch offer could be affected somewhat.
This situation once again raises questions about Apple’s continued dependence on China as an assembly center. a Bloomberg report Earlier this week, he highlighted this issue, noting that Apple’s reliance on China “has caused problems for the company, investors, and consumers during the pandemic.”
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