Most years, the smooth, straightforward rollout and the new iPhone are quite synonymous. This year, though, rolling out the iPhone 14 smoothly is almost a pipe dream. This is a fact that reflects the increasing difficulties involved in doing business in China. The The non-blocking approach The Covid-19 shutdown across China has led Apple to announce that it will not be able to produce enough phones to meet the demands of the holiday season.
The biggest contributing factor to such an unheard of statement? Uncertainty looms over the largest iPhone factory in the world, in Zhengzhou. For starters, it was China’s “zero covid” policy Factory production slowed down across the countryand the iPhone factory owned by Foxconn Technology Group, the largest iPhone maker, has not been spared from a slowdown.
When Covid-19 cases began to spike specifically in the region, Foxconn locked nearly 200,000 workers inside the grounds of a factory that can produce up to 85 percent of the world’s iPhones, according to Counterpoint Research. But it wasn’t long before the Covid virus began to spread, and Foxconn struggled to balance business demands with the country’s strict anti-pandemic policy.
The complex initially offered the workers an extra $14 per day to keep working. He later nearly quadrupled that amount, to $55 a day, when the workers began to fear for their lives and fled. Then the factory was forced to work in “significantly reduced capacityApple said. It is not at all clear when operations will return to full capacity.
Inevitably, a production slowdown in Zhengzhou has forced Apple to warn investors — for the third time in three years — that sales will be affected by disruptions associated with the pandemic for its operations in China. Now, Apple has once again extended the waiting time in mainland China for the most popular iPhone 14 models after Christmas.
If ordered today, how long before a customer in China receives the iPhone 14 Pro?
A check on Apple’s China website on Monday showed the wait time to be five to six weeks for the iPhone 14 Pro and Pro Max models, with the latest delivery extending to January 3, 2023. That wait is a week longer than what took early November, and two weeks longer than orders placed in late November. October. The two base models — iPhone 14 and iPhone 14 Plus — are available for same-day delivery or in-store pickup.
China’s state-backed weekly reported last week that the world’s largest iPhone factory, operated by Foxconn, needs 100,000 workers to resume full production capacity in the central Chinese city of Zhengzhou. according to China Newsweekin Taicang, a county in Henan Province with a population of 1.5 million, the facility has ordered 10,000 workers but only 2,000 have been hired so far.
Separately, according to the Shanghai-based KaylinchAs many as 72,000 people had registered their intention to work for Foxconn in an internal recruitment system by Wednesday, citing unspecified local job agencies. Unfortunately, the strict Covid-19 quarantine requirements are still affecting hiring.
In general, all of the newer Apple iPhone models in China suffered from lead time (the time between production starting and completion), according to a recent report from JPMorgan. She indicated that the two iPhone 14 Pro models had the longest periods of time in all regions. JPMorgan also highlighted that China alone accounts for 15% of all iPhone shipments worldwide.
Since its launch in September, Apple has seen its weekly iPhone sales decline rapidly in China. Even when tweaking the device’s previous version this year, the negative trend remained and was worse than the recent declines of Android competitors, Jefferies analysts including Edison Lee wrote in a note in October.
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