As a result of the ongoing COVID-19 pandemic in China, industry experts predict that Apple’s iPhone production could run into significant difficulties in the year 2023. The Chinese government has recently eased its containment efforts in specific places, one of which being the city of Zhengzhou, which is home to a substantial chunk of Apple’s production facilities for iPhones. It is possible that a new epidemic of the virus might disrupt production lines and cause delays in the manufacturing of iPhones if such an outbreak were to occur. This is a particularly worrisome possibility given that China is responsible for producing almost 90 percent of all iPhones.
The COVID-19 Pandemic Tends to put an Impact on iPhone Production in 2023
Apple and its manufacturing partner Foxconn are currently working together to relocate production to areas of China that are less likely to have been impacted by the virus. This is being done in an effort to reduce the potential risks. In addition to that, the company has decreased the amount of time it takes for its suppliers to deliver the company’s parts. However, supply chain experts have cautioned that there may be high absenteeism rates at the beginning of the year, not just in factories but also in warehouses, distribution, logistics, and transport. This is a concern because absenteeism can have a negative impact on the efficiency of the supply chain.
In November of the previous year, Apple foresaw substantial Christmas-related interruptions. With an estimated drop in sales of 8% due to a shortage of available stock of the iPhones. Because of these production challenges, the iPhone, which is essentially a cash machine, would be forced to put a halt to production. In the end, it would take anywhere from 5 million to 15 million iPhones to fill the gap.
In addition to this, several market analysts now believe that these sales might not take place. Some of them thought at first that they would just be delayed. This would be particularly true in China, which is responsible for a fifth of Apple’s overall income. In addition, it is the company’s third-most important market, ranking behind only the United States and Europe. The pandemic gave the Chinese an opportunity to rethink what they wanted to accomplish.
Apple will need to pay close attention to the situation over the next two to six months as a result of China’s immaturity in the management of Covid. Alan Day, who specializes in the management of industrial chains says that Standardization has been implemented in the remaining parts of the world, however, China has not taken any steps to encourage other countries’ businesses to use them. There is often a considerable expense involved. However, it’s possible that Apple won’t always be the beneficiary of our compassion.
Indeed, an “immature” administration could have a terrible human cost. In addition, some observation suggests that after the restrictions on containment were loosened, the threat became more widespread. During the winter months, one million people in China are at risk of dying from the Covid virus. While winter has come in China, the epidemic is still wreaking havoc across the country.
