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With most Apple Stores around the world closed since March 14, demand for Apple's devices has been dropping off. As a result, the factories that assemble those devices are reducing staff and cutting overtime hours, according to Financial Times.

chinafoxconn.jpg

Multiple workers at Foxconn's Zhengzhou complex, where iPhones are assembled, said that Foxconn has paused hiring and has begun cutting some of the temporary workers that it hired after ramping up production following factory closures in February.

Overtime hours have also been cut, and Foxconn has been encouraging employees to take holidays. Workers say no overtime has been worked since April 10.

Pegatron has also been cutting employees due to falling demand. Approximately a thousand temporary and third-party workers were fired, according to an employee at the factory. "The US orders are not coming, so why would we keep all the workers," he said.

Apple has begun reopening its stores, starting with a retail location in South Korea. There is no clear word yet on when stores in the United States are set to open, but Apple is aiming for May. Stores are expected to reopen on a rolling basis, with Apple taking into account local conditions and guidelines for each location.

Article Link: Apple Supplier Factories Reducing Staff and Cutting Overtime Due to Falling Demand
 

zubikov

macrumors regular
Sep 3, 2014
206
698
PA
20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.
 

Cosmosent

macrumors 68020
Apr 20, 2016
2,136
2,431
La Jolla, CA
IMO, Cook / AAPL should prioritize a 5.5" iPhone 9+, with ~3.7 GB of DRAM !

If they keep the same industrial design as the 8+, they could have it out in 3-4 months !

A13 + ~3.7 GB of DRAM + the same Front & Back 12 Mpx image sensors as the "base" iPhone 11.

And drop the Telephoto lens.

Better to offer it at $499 USD without it, than @ $599 USD with it.

Why this wasn't announced at the exact same time as the SE is extremely puzzling to me !

We we're almost in a Major Trade War with China late last year, which is/was reason enough for AAPL to have it in the works (n R&D) !!
 
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JPack

macrumors 604
Mar 27, 2017
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I'm confused. Apple just launched the SE, which seems to be in tight supply. And yet instead of making more phones, they're cutting labor? Maybe the SE is made elsewhere?

The SE2 is not in tight supply though.

There is a lack of global airfreight capacity, which is putting a strain on UPS, hence the slipping delivery dates for SE2.

If you look at China, the world's largest smartphone market and also where the SE2 is manufactured, you can have one delivered for launch day.
 

az431

Suspended
Sep 13, 2008
2,131
6,122
Portland, OR
The SE2 is not in tight supply though.

There is a lack of global airfreight capacity, which is putting a strain on UPS, hence the slipping delivery dates for SE2.

If you look at China, the world's largest smartphone market and also where the SE2 is manufactured, you can have one delivered for launch day.

There is no "lack of global airfreight capacity." Post a source or stop posting this nonsense.

In fact, capacity has increased since passenger aircraft can be devoted to cargo. For example,

 
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JPack

macrumors 604
Mar 27, 2017
7,885
13,480
There is no "lack of global airfreight capacity." Post a source or stop posting this nonsense.

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In fact, capacity has increased since passenger aircraft can be devoted to cargo. For example,


Overall cargo capacity has significantly decreased. Pre-pandemic, around 50% of the world's cargo flew in the bellies of passenger planes. Converting some passenger aircraft to carry cargo only make up some of the shortfall.
 

Relentless Power

macrumors Nehalem
Jul 12, 2016
36,041
39,514
20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.

Bolded:

That’s a bit of a stretch with your comment. Even before the pandemic/recession, Apple Products have always been expensive and unobtainable for some who never Had intention of owning those products to begin with to begin with. The iPhone SE has the perfect timing, in regards that it’s an entry-level iPhone that’s less than half the price of the most expensive iPhone, but will appeal to audiences across the world, not just in North America alone.
 

zubikov

macrumors regular
Sep 3, 2014
206
698
PA
Bolded:

That’s a bit of a stretch with your comment. Even before the pandemic/recession, Apple Products have always been expensive and unobtainable for some who never Had intention of owning those products to begin with to begin with. The iPhone SE has the perfect timing, in regards that it’s an entry-level iPhone that’s less than half the price of the most expensive iPhone, but will appeal to audiences across the world, not just in North America alone.

Apple always managed to price them perfectly. They're just a stretch for those that "shouldn't" be buying them, but can't help it. There's usually 3-5 price points in every product. All products are highly elastic. This works perfectly when there's full employment and people can finance their purchase. It was "attainable luxury".

I don't think it's a stretch anymore unfortunately, since the unemployment spike is that drastic. People who were thinking of getting Watch series 5 to update their series 3, folks with a 2015 Macbook Pro wanting the 2019, that person with an iPhone X finally looking to upgrade...they're all going to hunker down. No one wants to spend hundreds or thousands that they're don't have right now. 20 million jobs in US is 1/8th of the workforce.
 
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CarpalMac

macrumors 68000
Nov 19, 2012
1,548
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UK
Hardly unexpected. The recession has begun.

Even before the virus took hold, the UK government was just about to implement it's Ltd. company taxation rules (known as IR35) in the private sector, with the majority of firms blanket banning contractors operating as Personal Service Companies from that date.

Approximately 250,000 people operate as PSC's, and there are tax allowances for buying IT equipment which made Apple prices slightly more bearable. Post IR35, those allowances are gone.

Even though this change has been delayed now, 10's of thousands of people are now out of work (I personally know of 23 people just myself) as contracts were being terminated, it inevitably will result in significantly fewer sales for Apple, if only just the UK. Of course, the virus has amplified this exponentially.
 

T-R-S

macrumors 6502
Sep 25, 2010
421
244
Silicon Valley
millions unemployed - they can't afford extra's
- businesses that are still running running don't know what's going on - they can't afford extra's
- people who still have job may not next month - they can't afford extra's
I think everything that's not essential (food and roof over your head) people are in the bunker for the next year or so.
 

danny842003

macrumors 68000
Jun 6, 2017
1,605
1,930
There is no "lack of global airfreight capacity." Post a source or stop posting this nonsense.

In fact, capacity has increased since passenger aircraft can be devoted to cargo. For example,


you do realise passenger planes carry cargo anyway, that’s just vanished. For someone so abrupt you should post some sources yourself.
 
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sideshowuniqueuser

macrumors 65816
Mar 20, 2016
1,438
1,143
I'm confused, products being delayed due to lack of production, but factories cutting staff and reducing production due to lack of demand. What's going on here?
 

mdriftmeyer

macrumors 68040
Feb 2, 2004
3,394
1,147
Pacific Northwest
I'm confused. Apple just launched the SE, which seems to be in tight supply. And yet instead of making more phones, they're cutting labor? Maybe the SE is made elsewhere?

Apple isn't their only customer. Misleading headlines are just that, click bait and misleading.
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Mo more Apple products for me that are made in China.........

Go buy Android. Oh wait.
 
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Baymowe335

Suspended
Oct 6, 2017
6,640
12,449
The SE2 is not in tight supply though.

There is a lack of global airfreight capacity, which is putting a strain on UPS, hence the slipping delivery dates for SE2.

If you look at China, the world's largest smartphone market and also where the SE2 is manufactured, you can have one delivered for launch day.
More of the usual nonsense from you. You've been consistently wrong on Apple's supply chain and their prospects...why should anyone listen to you?
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Hardly unexpected. The recession has begun.
Lots of people still working remotely, particularly those who buy Apple products. Apple will dip some and roar back, as usual.
 
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Tech198

macrumors P6
Mar 21, 2011
15,916
2,148
Australia, Perth
If there is one thing you ever know, if you never hire more people, then just happen to kill them off later, except in this case where there are issues elsewhere down the linewhich which would bottleneck the entire thing.

If there is one thing you ever know, if you never hire more people, then just happen to kill them off later, except in this case where there are issues elsewhere down the linewhich which would bottleneck the entire thing.

Lots of people still working remotely, particularly those who buy Apple products. Apple will dip some and roar back, as usual.
Every business is suffering... It's good to work from home, but if you can't get them out the door, then at least you'll be ready for few months time.
 

allenoftexas

macrumors newbie
Sep 8, 2015
6
7
A company worth $1 trillion in 2018 is now cutting staff due to lowering demand. LOL. A company that is hardly suffering. Seriously.
 
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