Apple warns of lower iPhone 14 Pro shipment due to Covid-19 restrictions at Chinese factory

[Shawn Knight]

TL;DR: A new wave of Covid-19 restrictions in China is impacting Apple's ability to produce its flagship iPhone. On Sunday, Apple said the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility in Zhengzhou, China, is operating at significantly reduced capacity due to Covid-19 restrictions. Cupertino added that it is working with the supplier to return to normal production levels while prioritizing the health and safety of workers at the factory.

Apple announced its iPhone 14 family on September 7 ahead of a September 16 launch. It has been a bit of a roller coaster ride for the new handsets as reports surfaced in late September that Apple was dialing back plans to increase production due to lower-than-anticipated demand.

Last month, The Information claimed Apple had instructed suppliers to cease production of the iPhone 14 Plus less than a month after it went on sale. The iPhone 14 Plus starts at $899, a tough sell considering the iPhone 14 Pro goes from $999 and the Pro Max is just $200 more.

Foxconn's Zhengzhou facility employs around 200,000 people and has been rocked by strict Covid-19 restrictions. A source familiar with the matter told Reuters last week that Foxconn was working to ramp up output at another factory in Shenzhen to make up for the loss of production. According to research firm Counterpoint, the facility produces around 80 percent of current-gen iPhones.

Apple said that although they are continuing to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max, they now expect shipments to be lower than anticipated. As such, customers will experience longer wait times to receive their purchases meaning if you are looking to get or give one as a gift this holiday season, time is of the essence.

The production hiccup could not come at a worse time as electronics makers and vendors alike historically rely on the year-end holiday season to put them in the black.

Image credit: Zana Latif, Victor Serban

Permalink to story.

https://www.techspot.com/news/96579-apple-warns-lower-iphone-14-pro-shipment-due.html

 

[Shear]

Didn't they initially say it was due to low demand? I swear I read it here that it was due to low demand and now it's "ahhhhhhhh Covid... yes".

 

[Neatfeatguy]

Didn't they initially say it was due to low demand? I swear I read it here that it was due to low demand and now it's "ahhhhhhhh Covid... yes".

Yes, you're thinking of this story that was out about 3 weeks ago:
https://www.techspot.com/community/...on-by-up-to-90-on-back-of-weak-demand.277556/

 

[Shear]

Yes, you're thinking of this story that was out about 3 weeks ago:
https://www.techspot.com/community/...on-by-up-to-90-on-back-of-weak-demand.277556/

Seems like the same stuff that is happening with Nvidea now. Got addicted to covid profits so everyone is trying to create artificial scarcity.

 

[Theinsanegamer]

You know, I got to work with a iphone 14 plus today.

It royally sucked. Trying to add a Gmail account to the Gmail app kept opening up the iphone's camera app, and it wanted to use face ID. It just plain refused to use the keyboard until I got the user to look at the stupid thing.

It's so annoying. All that cash for 18 extra steps.

 

[Avro Arrow]

So... the pandemic DID have an upside!

 

[kiwigraeme]

So... the pandemic DID have an upside!

Think lots of studies still to be completed - but Covid 19 had quite a few outsides - for nature a mixed bag - nature go a rest in some areas - but poachers, illegal loggers got a free reign - and predator control was done less

 

[umbala]

Didn't they initially say it was due to low demand? I swear I read it here that it was due to low demand and now it's "ahhhhhhhh Covid... yes".

They're going to pretend it's supply chain issues and not low demand. This way all the tech sites can parrot the same nonsense and Apple can scare people into buying more iPhones because they will think there will be a limited supply.

 

[umbala]

You know Apple could sell a lot more iPhones if they lowered the price to reasonable level. But of course they would never ever do that in a millions years. They would rather create scarcity and pretend it's someone else's fault.

 

[rmcrys]

Didn't they initially say it was due to low demand? I swear I read it here that it was due to low demand and now it's "ahhhhhhhh Covid... yes".

On my european country most companies (including supermarkets) are learning the same tricks:

A) invent a plausible (or not) reason. So "due to X (covid, war, bad weather, climate changing, hormones,...)..."

B) costs went up (but no-one had increased wages, worked more than ever and don't find a reason for the extra costs)

C) energy went up to the sky, nevertheless ships and tubes are completely full, so that they have to wait until they find a place to put the oil and gas. So if I pay more for the gas it should be on the account of the increase, right? So energy companies shouldn't have more win, right? Wrong. They have record wins!!! How come?! I don't know in other countries but in Europe if the oil goes down, gasoline goes down only after some days if the price stays down for many days; nevertheless if the oil price is said to go up in a week, they increase the gasoline price now! Then record wins. Fantastic...

D) create need and buy anxiety: "we are selling so many units and production went down due to X, so it may be a good idea to buy now or you won't have a unit!:.... and?! Well if it doesn't come now, it will come later. Nothing happens... the world will keep spinning.

Example: a local investigation found that a huge supermarket network, before the covid (and increases) they payed around 15 cent pro apple kg to local producers and sold it to final consumer for 8x more; now that gas and inflation increased, they say to the producer that they cannot pay more or people won't buy, so they still pay 15 cent pro kg despite the producer has increased costs; they sell the apples now at 13x the price.

So the product earns even less, the consumer pays more and the giant network has record earnings. Great economy...

It is Apple, Nvidia and 99.9% of the world companies. Sad moves.

 

[R00sT3R]

Lol..I have a picture in my mind of bearded 20 & 30 something hipster types (male & female) bawling their eyes out under the tree, Christmas morning.

 

[ThrakazogZ]

This is just the latest marketing tactic. Companies tell the media they won't have enough product available to create demand from people, similar to FOMO. Not enough iPhones; not enough 4080s; BUY ONE BEFORE THEY"RE GONE FOREVER....AHHHHHHH!!!!!!!!

 

[Superconductor]

Burn!

 

[Experimentongod]

I'm not sure why apple is "warning" us. To me this sounds like an "Apple" problem not a "consumer" problem.