Updated on December 15th, 2021
According to Nikkei (Nihon Keizai Shimbun- Japanese business newspaper), supply chain constraints have caused Apple to suspend production of its iPhone series for the first time since the pandemic began in 2020. Normally, Apple's production ramps up to meet worldwide demand for the holiday shopping season this week. But instead of more shifts and 24-hour production schedules, employees have been given time off.
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Apple's iPhone Production Objective
Apple's initial objective was to produce 95 million iPhone 13 models in 2021, but by the beginning of December, that number had decreased to roughly 83-85 million.
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Decline in Production
The reallocation of shared components squeezed iPad assembly even further in September and October. This resulted in around 50% less production volume than projected, according to Nikkei. Furthermore, output forecasts for older generations of iPhones also dropped around 25%.
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The complete Nikkei report delves deeper into the various iPhone 13 component suppliers and the reasons for their delays. Delays are caused by a variety of factors, including Malaysian and Vietnamese lockdowns, unanticipated power constraints in China, shortages, production bottlenecks, and longer component lead times, among others.
Read more: Apple Ties Up With TSMC To Create iPhone 5G Modem Chip.
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