iPhone production stopped because of covid? Here is the whole truth

China is facing an unprecedented coronavirus wave. It is important to note that there are not so many diseases, but the local authorities are introducing an unprecedented quarantine on the territory of the city where the infection was discovered – we in Russia never dreamed of it so that our minds are occupied with other things, in the Celestial Empire they are fighting an infection which, it seems, has remained in the past and even close businesses: among them was foxconn factorywho collects iPhones. Business job news comes in every day and it’s hard to navigate.

Apple has problems: iPhone production could stop due to quarantine at Foxconn

❗️ ПОДПИСЫВАЙСЯ НА НАШ ЯНДЕКС.ДЗЕН И ЧИТАЙ СТАТЬИ, КОТОРЫХ НЕТ НА САЙТЕ, КАЖДЫЙ ДЕНЬ ❗️

Apple last week announced record revenue figures again, but Tim Cook expressed a reservation that a recession could begin in the coming months. The company has already adjusted its plans for the future, taking into account the current situation and the question The iPhone 14 in danger, despite the assurances of the boss of Apple. What’s really going on?

iPhone production in China

Unfortunately, the coronavirus has not gone away and continues to interfere with a peaceful life. In China, they are actively fighting it and organizing hellish closures of entire cities. It would seem that this will not affect the large production plant of Foxconn located in Zhengzhou: the Chinese assembler intended yesterday to increase the number of workers due to the increase in the volume of orders. Let me remind you that not too long ago Apple decided to release 10 million more iPhone 13 Pro and Pro Max to keep up with demand.

The plant also planned to start recover iPhone 14 sooner than expected – for this, new workers could receive a premium increased by 30% when applying for a job. Apple and Foxconn have reportedly already agreed to an uninterrupted supply to meet demand due to supply constraints. True, it seems that everything is not so simple.

Factory work may be suspended, but so far there is no reason for this

Already today, the South China Morning Post reported a most heartening news: Foxconn suspended the admission of new employees to the Zhengzhou plant after the Chinese authorities announced a seven-day quarantine in response to new outbreaks of coronavirus. It proves, The iPhone 14 might not be released in time, and buyers will face a shortage of popular iPhone 13 models? Not really.

At the moment, the company has only suspended the hiring of new workers, but has not closed the production of devices. At least until further notice from the government. Big addition to the factory Foxconn in Zhengzhou in that it was created in the form of a cluster: a closed system consists of companies and dormitories, so the risk of introducing an infection into the team is extremely low.

As you can see, the statistics show that the incidence is falling rapidly.

It should also be noted that the incidence is already declining – less than 20,000 cases have been detected nationwide, and in April areas of the city around the factory were quarantined in Zhengzhou. This had no effect on production. By the way, at the time of the suspension of the Shenzhen factory, more than 3,000 cases were registered there and more than 30,000 nationwide.

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Stopping iPhone production

Probably, when production is closed in the future, it will be possible to catch up with the required production volumes

Now, there’s nothing to worry about, but the iPhone assembly shutdown is still hurting the market. In March, Foxconn was forced to withdraw for a short time. Production of iPhone in Shenzhen: The Chinese authorities have allowed the operation of the company, but on the condition that all employees are in the so-called “bubble”. And the Shenzhen factory does not assemble as many smartphones as the Zhengzhou factory: according to statistics, it produces around 80% of iPhones in the world. Fortunately, the situation is not critical: as a rule, the quarantine lasts a week and that is enough for healthy employees to go to work, and for those who are sick to recover. But, just in case, Apple has already warned that containment in China may affect delivery.

The distance between the plants is more than 1300 km, so they do not intersect in any way.

Let me remind you that the pandemic has interfered with Apple’s plans more than once: for example, the company postponed the launch of the iPhone 12 for more than a month, but finally managed to catch up volumes required and even released the iPhone 13 just in time last year. Experts are sure that the pandemic will not affect the iPhone 14: two years later, treatment methods changed, and the sick themselves began to endure covid much easier, and the quarantine in the world was completely reduced to one week. This is why there should be no delay in the production of the iPhone.

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Shortage of chips 2022

The iPhone 14 range will increase in price, but not completely and not everywhere

On the other hand, manufacturers are still facing a shortage of chips, which prevents them from producing the required number of components. TSMC has already announced a price increase for processors, resulting in The iPhone 14 will become more expensive. Admittedly, this will most likely affect the iPhone 14 Pro and Pro Max: this is due to the fact that the smartphone will have a chip made using a new 4-nanometer process technology and a new 48-megapixel camera.

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Analysts also suggest that rising iPhone prices in other countries are associated with unstable local currencies, but smartphone prices will only rise if the situation in the foreign exchange market does not normalize sooner. autumn.