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

[Mr. Dee]

Look at what the ads for the iPhone SE is projecting. It’s about being out, taking pictures and showing off to the world you have the new iPhone. Considering if you are in lock down, what are you gonna do, take pictures of yourself in the bedroom, kitchen and bathroom? On top of that, are you taking pictures when you go to the supermarket? Does Facebook, Twitter and Macrumors require an A13 Bionic processor? I have my iPhone 6s as a spare and it seems to do most things my iPhone X does well too.

Yes, the iPhone SE and iPhone 11 phones are really nice, but not a necessity as this time. The problem is too is Apples older devices keep chugging along just well. I do know there is the psychological effect of having something new. It’s coping mechanism for some persons. But I like looking at 1200 dollars in savings in my bank account instead and knowing my existing devices are meeting my needs. But, at the end of the day, its your money, you can always spend it however you wish. But remember, Apple released an iPad just this month which is basically a spec bump.

The knowledge I want to impart here is, squeeze as much longevity out of your Apple devices as far as you can. Stop fooling yourself that your existing phone is slow, so its justification to get the latest. Remember, this is what Apple is even known for, supporting older devices with software updates.

 

[sakurarain]

Apple production might be only part of their full capacity..... they also manufacture items for e.g. ASUS, Acer, SONY, OPPO etc., I guess.......

 

[incoherent_1]

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,

Delta Ups Cargo Flights to Seoul And Shanghai

simpleflying.com

The post offices in the country I live in now have stopped accepting airmail/express deliveries for dozens of countries due to the decrease in available cargo space.

Many people assume cargo mostly travels on cargo planes, but this is wrong. Many if not most commercial flights carry cargo. Sure, some airlines have repurposed commercial metal to carry cargo on some major, high demand routes, but the fact remains: many air-links between cities have been severed. If I want to mail something to any of those dozens of countries, it goes by boat and takes multiple weeks.

 

[Romeo_Nightfall]

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?

india
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The post offices in the country I live in now have stopped accepting airmail/express deliveries for dozens of countries due to the decrease in available cargo space.

Many people assume cargo mostly travels on cargo planes, but this is wrong. Many if not most commercial flights carry cargo. Sure, some airlines have repurposed commercial metal to carry cargo on some major, high demand routes, but the fact remains: many air-links between cities have been severed. If I want to mail something to any of those dozens of countries, it goes by boat and takes multiple weeks.

which is the normal way anyways. Air cargo is way to expensive for huge deliveries!

 

[FlyingDutch]

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.

Yep. Because it’s not just the UK. All over the Europe, and even worse in the USA (Apple’s bigger market) people are losing jobs. This will impact non essential sales for sure.
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Lots of people still working remotely, particularly those who buy Apple products. Apple will dip some and roar back, as usual.

Wrong.
There are people working remotely (I’m lucky enough to work one week on site and one week remotely and my wage wasn’t affected so far) but A LOT, and I mean MILLIONS of people aren’t.
That will have an impact on sales. Not only for Apple.
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Apple production might be only part of their full capacity..... they also manufacture items for e.g. ASUS, Acer, SONY, OPPO etc., I guess.......

For sure, but it is a very big part.

 

[dannys1]

The opposite of what my Apple supplying business is experiencing - we've having our best two months in 10 years of the company and literally can't keep up with demand. It's insane.
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Every business is suffering...

Well that's incorrect.

 

[incoherent_1]

which is the normal way anyways. Air cargo is way to expensive for huge deliveries!

Most Apple products go via air from China (at least to the US), but yes correct that generally across all categories of products more cargo moves by water. I was just refuting the false claim that there was no decrease in available air cargo.

 

[sirozha]

Mo more Apple products for me that are made in China.........

No more Aople products for you.
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I resell electronics made in China. There has been a tremendous constraint with air cargo capacity in the past few months, it takes much longer to get products delivered, and the cost of shipping by air has increased by at least 50%.

 

[whatta]

Ok, so there might be enough resources to prepare the A14X mini LED iPad Pro this year.

 

[ani4ani]

A status symbol is a completely subjective opinion. YMMV.

If you're a 13 year old teenager it might be [sorry it is!]

 

[I7guy]

If you're a 13 year old teenager it might be [sorry it is!]

Exactly the point I was making. Anybody can *believe* they have a status symbol or make something more out of a physical possession than it really is, that doesn't mean it really is. And good for them for thinking so as everybody is entitled to their opinions (even if some are severely misguided)

Hope and wishful thinking do not count for this bizarre point OP is attempting to make.

 

[CausticSoda]

Gosh! Whoever saw that coming?

 

[throAU]

Apple iPhone SE likely not made in the same plant or on the same line as the 11 Pro. Or other Apple devices.
I suspect sale of high end Apple devices will be very slow and the SE will pick up some of those sales due to conditions.

the rest of apples line up will be hit hard by this though as whilst the phone is good value for an essential device the rest of their products are definitely optional luxury items.

some may consider an iPhone SE a luxury item too but if you take longevity into account the pricing isn’t bad. The value is there and that’s what counts for a long term purchase.

in 2020 a mobile phone isn’t really a luxury. It’s an essential device if you live and expect to work in a first world country.

 

[LizKat]

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?

Mixed messages are the order of the day lately... but these are not all from the same source or about the same product lines and some relate to demand in different countries' markets. Demand may have dropped off "in general" due to economic uncertainties, but not for anyone who's been planning on an Apple product purchase for awhile now and was only waiting until one with the desired features turned up launched. New keyboards on Apple laptops, for instance... or a right-sized iPhone upgrade for those who prefer a somewhat smaller form factor.

 

[Septembersrain]

T-Mobile offering trade in off the new SE right away for existing customers is something I don't usually see for Apple. The deals are usually reserved for new customer port-in. Just my opinion but perhaps demand really isn't there, no matter how cheap it is.

Not only are people massively unemployed but I think the small things that prompt a new phone purchase have been altered. Such as seeing the new phone in a store, seeing other people use them, etc.

 

[LizKat]

T-Mobile offering trade in off the new SE right away for existing customers is something I don't usually see for Apple. The deals are usually reserved for new customer port-in. Just my opinion but perhaps demand really isn't there, no matter how cheap it is.

Not only are people massively unemployed but I think the small things that prompt a new phone purchase have been altered. Such as seeing the new phone in a store, seeing other people use them, etc.

What I bolded above in your post is a really good point... I remember now that I had first got interested in the XR because I was in a mall in a Bed Bath and Beyond shop (and where a nearby store was AT&T) and a woman browsing through the saucepans and skillets area alongside me was sporting an iPhone XR... I commented on it and she said she'd just got it the previous week next door and loved it. Took me awhile to make up my mind and I eventually ordered it online from Apple, but it was seeing her XR close up with that gorgeous sharp display that really pitched it to me.