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At the beginning of October when device production typically ramps up, Apple cut iPhone and iPad assembly for several days because of supply chain constraints and "restrictions on the use of power in China," reports Nikkei.

iphone-13-pro-max-display-bleen.jpg

In a detailed report on Apple's iPhone production woes, Nikkei says that Foxconn, Pegatron, and other Apple suppliers ramped down on production for the first time in more than a decade, with workers getting time off rather than overtime hours as is typical.
"Due to limited components and chips, it made no sense to work overtime on holidays and give extra pay for front-line workers," a supply chain manager involved told Nikkei Asia. "That has never happened before. The Chinese golden holiday in the past was always the most hustling time when all of the assemblers were gearing up for production."
According to Apple CEO Tim Cook, supply constraints around the time of the iPhone launch cost Apple more than $6 billion. Cook cited chip shortages as one of the reasons for the supply issues, and while Apple uses leading edge nodes that are not affected by ongoing issues with chip availability, other manufacturers that create components for Apple devices have been impacted.

October reports said that Apple cut its 2021 iPhone production goals by more than 10 million units after Broadcom and Texas Instruments were unable to deliver enough components. The lack of even a single tiny component for the iPhone can impact production, and there are a lot of moving parts for Apple to deal with.

Nikkei did a deep dive into Apple's supply issues, interviewing more than 20 industry executives to see what went wrong. Apple reallocated components from iPads and older iPhones like the iPhone 12 to the new iPhone 13 models, but production was still 20 percent short of where Apple wanted to be because of power restrictions in China, lockdowns in Vietnam and Malaysia, and supply bottlenecks caused by skyrocketing demand for chips.

The reallocation hit iPad production hard and Apple produced 50 percent fewer devices than planned, with shortages on the tablets lasting well into November. With many iPad models in short supply, customers who order now won't be able to get a device in time for Christmas as delivery already extends into January.

According to Bloomberg, Apple recently informed its suppliers that interest in the iPhone is slowing ahead of the holidays, which could be due to the long wait times for new devices in September and October. Apple planned to make up for the supply constraints in early 2022 when manufacturing issues were ironed out, but Bloomberg claims Apple may not end up getting the necessary orders from customers.

Sources that spoke to Nikkei painted a different picture, and said that Apple has asked suppliers to reaccelerate iPhone production in November, December, and January. An Apple component supplier told Nikkei that Apple has reassured them that demand has persisted and that Apple has postponed orders to a later period because of supply constraints, so it's not clear which take is accurate.

Nikkei's full exploration into Apple's supply chain and what led to the company's current situation with chip shortages and production delays is well worth reading.

Article Link: Nikkei Does Deep Dive Into Apple's 'Nightmare Before Christmas' Supply Chain Issues
 

GMShadow

macrumors 6502
Jun 8, 2021
290
1,045
With many iPad models in short supply, customers who order now won't be able to get a device in time for Christmas as delivery already extends into January.

Has for a little while, honestly. I'm mid January on an engraved 256GB Purple Mini 6, but non-engraved was only a few days quicker, and I ordered in November.

I still check the order status daily hoping for some kind of miracle. :D
 

iFan

macrumors regular
Jan 3, 2007
244
707
The Bloomberg story seems the least likely to be accurate. Why would Apple lower orders beyond typical seasonality when they aren’t even in supply/demand balance yet? After they’ve hit balance, they will want to stuff the channels with a few weeks inventory, as well.

Following Apple for two decades, the Bloomberg article makes my internal misinformation alarms go off. Apple needs at least another 2 months to get to normal levels of supply. It’s usually Nikkei who first announces the seasonal q1 supply cuts, and this year they are taking the opposite view. Fascinating.
 

Karma*Police

macrumors 68020
Jul 15, 2012
2,170
1,941
Sounds like stock manipulation or a slow news day so let’s make up a story about one of the world’s biggest companies to get clicks.
 
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dannys1

macrumors 68040
Sep 19, 2007
3,258
5,851
UK
This entire article and not a single mention about the fact that it's 8 weeks to get a CTO M1 Max MacBook Pro - the longest lead times ever seen - and for resellers no sight or sound of base SKUs.
 

Relentless Power

macrumors Westmere
Jul 12, 2016
37,388
41,743
Apple obviously is not the only company that’s dealing with supply shortages. It’s across many industries, but I think as a company as big as Apple is, how do you project the future, when we could see the effects of this pushing to 2023. There’s so much uncertainty and so many variables, I don’t know how one can plan for various production, when you can only reassess likely on a month-to-month basis.

There are thousands of companies in this very position, and not just tech related, but across so many different vendors. It really is chaos that no one has a direct answer.
 

TomMcIn

macrumors regular
Oct 22, 2008
115
178
Canada
The article does not mention that the problem, if accurately described, applies to all manufacturers. If they don't include the word "Apple" in the headline, then nobody reads the article.
 

rumz

macrumors 6502a
Feb 11, 2006
951
443
Utah
Has for a little while, honestly. I'm mid January on an engraved 256GB Purple Mini 6, but non-engraved was only a few days quicker, and I ordered in November.

I still check the order status daily hoping for some kind of miracle. :D
Yeah-- I ordered a Mini on Nov 9... estimated window is Dec. 9 - 16; Hasn't seen any movement, I'm guessing it's going to be closer to the 16th.

You know... maybe it's not the worst thing for society to move away form instant gratification a bit ;)
 

rumz

macrumors 6502a
Feb 11, 2006
951
443
Utah
As someone who runs an Apple business I can guarantee you it's not made up - the supply issues are an absolute nightmare at the minute.
Oh I took his comment to mean that the Bloomberg suggestion that Apple was cutting production due to waning demand was intended as stock manipulation (whether it was or not-- could even just be simple clickbait). I didn't think he was suggesting there wasn't a very real production bottleneck due to substantial supply chain issues.
 
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dannys1

macrumors 68040
Sep 19, 2007
3,258
5,851
UK
Oh I took his comment to mean that the Bloomberg suggestion that Apple was cutting production due to waning demand was intended as stock manipulation (whether it was or not-- could even just be simple clickbait). I didn't think he was suggesting there wasn't a very real production bottleneck due to substantial supply chain issues.

Ah ok fair enough - you're probably right.

On the other hand I took the Bloomberg comment to suggest they'd had to cut production because the parts just aren't available. Cuold be either I guess.
 

Karma*Police

macrumors 68020
Jul 15, 2012
2,170
1,941
As someone who runs an Apple business I can guarantee you it's not made up - the supply issues are an absolute nightmare at the minute.
Supply chain I believe… Tim already warned investors that would be the case this quarter. But one story said Apple asked factories to cut production due to slowing demand while the other said Apple said demand is strong but supply chain was responsible for cutbacks. I guess the second story could be true, but nowadays, it’s hard to trust these “journalists.”
 
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dbwie

macrumors 6502
Jun 11, 2007
492
106
Albuquerque, NM, USA
To me what is suspicious is all of this news dump, good and bad, recently. It seems like different entities are competing to manipulate the stock price, up or down. The supply chain issues are definitely real, or Tim Cook would have never mentioned it in their last earnings call.
 

JosephAW

macrumors 601
May 14, 2012
4,633
5,695
Don’t worry Apple, I’m happy with my iPhone 11 Pro Max for the next year or so. :p
 

Relentless Power

macrumors Westmere
Jul 12, 2016
37,388
41,743
Don’t worry Apple, I’m happy with my iPhone 11 Pro Max for the next year or so. :p
They wouldn’t target you anyway. Probably for iPhone 8/X owners , that would be looking at the newest iPhones. But still, this is Apples time of the year that they maximize and close out net sales.
 
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Shirasaki

macrumors G5
May 16, 2015
12,844
6,809
Meanwhile apple stock hits all time high, over $200.
Neither lowering demand, nor supply chain issues, or even the mighty pandemic, could prevent apple stock price from going up.
I’d argue supply chain issue will last almost indefinitely, because of resource shortage.
 

Shirasaki

macrumors G5
May 16, 2015
12,844
6,809
Don’t worry Apple, I’m happy with my iPhone 11 Pro Max for the next year or so. :p
Same. Just got battery replaced for my otherwise pretty good iPhone XS Max. Not having 5G sucks, but that’s neither here nor there.
 

Shirasaki

macrumors G5
May 16, 2015
12,844
6,809
They wouldn’t target you anyway. Probably for iPhone 8/X owners , that would be looking at the newest iPhones. But still, this is Apples time of the year that they maximize and close out net sales.
Well, apple certainly need to try harder to convince me buying iPhone 14 next year given how lacklustre iPhone 13 is.
Besides, Q4 sale number might look worse than people would like to accept.
 

Cosmosent

macrumors 68020
Apr 20, 2016
2,315
2,691
La Jolla, CA
On Nov 1st, 2018, Apple announced that they would NO longer disclose iPhone Unit Sales.

That was just a few days after the XR was released.

If things were going well for Apple right now, they would find some Excuse to RE-start the iPhone Unit Sales reporting !

IMO, "Basic Common Sense," can be used to determine if iPhone Unit Sales are going well OR NOT.

Those who know iPhones well, can do their own Assessment as to whether there is a sufficient "value proposition" to upgrade.

And by that I mean, by those who have an "11" iPhone OR older.

Specifically, what are the Must Have Features & Capabilities that would trigger a surge in iPhone Unit Sales, & how many are included in the "13" iPhones ?

I'll start:

1.) Touch ID under Glass

2.) Brand-new Industrial Design

3.) Wi-Fi 6E support

4.) ???

ALL, feel free to chip in ...
 
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