This is the first time in 10 years that an American tech company, Apple has stopped production of iPhone and iPad. Although supply chain constraints have been a global issue for over a year, Apple has managed to secure its own production lines anyhow. But now, a new report suggests that the shortage of components has finally hit tech company Apple, disrupting the production. Along with this ongoing power usage restrictions in China, contributed in halting the production of iPhone and iPad.
iPhone, iPad production halted | Key points
1. Apple has now halted the production of iPhone and iPad. A report by Nikkei Asia mentions that the assembly lines for both the Apple products were halted "for several days" due to the shortage of components used in their manufacturing. Also, the ongoing restrictions on the power usage in China became the other reason that prevented production.
2. Apple had earlier projected to produce 90 million new iPhone units in the last three months of the year, but the projected number was cut down by 10 million units.
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3. Although the supply chain constraint has hit many firms, Apple still managed to secure supplies for its units in advance. And so, this is the first time since the start of the pandemic that Apple has actually had a direct impact of the supply chain constraint on the production of its gadgets.
4. The report also suggested that this period has usually been very productive for Apple in terms of manufacturing. But this year the situation is completely different.
5. The shortage has and will continue to impact Apple's revenue expectations in the coming year, as the festive season is near but the production has stopped.
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