Actually, the iPhone 13 should still be a sales hit in 2021. But due to a lack of components, Apple will not be able to meet its production target this year.
Apple is also not spared from the global chip crisis. Back in November, atechbook reported that a lack of component availability was causing delivery problems for the iPhone 13. The weeks-long delivery times in turn caused a slump in demand, which is why Apple expects fewer sales. Now a report has surfaced that explains how this could have happened. According to the report, Apple had to completely stop production in October – for several days and also for the iPhone 13.
iPhone 13 production stopped for several days
Normally, the first week of October in China is the time when the factories of Apple suppliers are in full swing. While others have the Chinese “Golden Week” off, shift workers work 24 hours a day to produce enough new iPhones for the Christmas season. But according to an insider report by industry analyst “Nikkei Asia,” the exact opposite happened this year. For the first time in more than a decade, production had to stop completely. For several days, no new iPhone or iPad left the production line. Instead of working around the clock, factory workers were given a vacation. According to “Nikkei Asia”, not only missing components but also restrictions in power availability for the factories are responsible for this. China had recently been struggling increasingly with power outages and therefore imposed an electricity limit for many regions.
Already in November, prospective buyers had to prepare for long waiting times, especially for the Pro models of the iPhone 13. This scared off many and led to an unexpected drop in demand – and cost Apple billions. In some countries, the iPhone 13 is no longer available before Christmas. In Germany, too, the iPad mini, for example, will not arrive at home until the end of January and in the Apple Store at the beginning of February.
Also interesting: Massive supply problems with the iPhone 13 still until 2022
Apple can’t get important components
Insiders familiar with the supply chain told “Nikkei Asia” that Apple had tried by all means to reach the production target despite everything. To that end, they said, production of the iPhone 12, iPhone SE 2020 and iPad had been scaled down. Nevertheless, production fell short of expectations, as “Bloomberg” also reported. The target of 90 million units is said to have slumped by a whole 10 million – or 11.1 percent. According to “Nikkei Asia”, the complex design of the iPhone 13 with more than 2000 individual components is responsible for this. According to the report, it is mainly the cheaper and widely used components that are affected by production bottlenecks, while iPhone-specific parts such as the A15 Bionic and the display are available. “Nikkei Asia” also lists exactly which reasons are responsible for the shortage of individual components. These range from limits in the power supply in China, to lockdown measures in supplier countries, to exploding demand.
Even Apple, with its considerable market power, cannot counteract the delivery problems with the low-priced components. These parts are not made specifically for the iPhone, but are also used by other smartphone manufacturers, smart home devices and even cars. They are mostly simple chips such as power management, display controllers, transceivers and connectivity. Even if all other parts are available, iPhones and iPads cannot be manufactured without these small chips.
- Nikkei Asia