Home » As supply chain issues improve in China, Apple faces sales slump with some iPhone models

As supply chain issues improve in China, Apple faces sales slump with some iPhone models

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The supply chain problems faced by Apple Inc. from the ongoing COVID-related disruptions in China may have passed the worst point, just as the company now faces new challenges. . It is the slump in sales of low-end models.

Apple’s problem in mainland China is the oldest day The outbreak of COVID-19 was on the rise, but it got worse when protests broke out at Foxconn’s factory in Zhengzhou in 2015. Late October. Along Early NovemberApple warned that supplies of the iPhone 14 Pro and iPhone Pro Max would be lower than expected.

Proceed to December and then unprecedented protest In the Middle Kingdom, the Chinese Communist Party withdrew its zero-COVID policy, causing further disruption to millions, 37 million. people a day — Catch COVID.

With the situation in China still unfolding, Foxconn is trying to solve its manufacturing problems and is throwing money at it.south china morning post report The company announced late Wednesday that it would offer a 5,000 yuan ($718) bonus to employees who agreed to work at its Zhengzhou factory, the world’s largest iPhone factory, until late March.

Factories are said to be struggling to resume full operations not only after the October protests, but also after thousands of workers shut them down. escaped from the factory To avoid COVID lockdown. A Zhengzhou factory worker is also entitled to a 6,000 RMB ($862) “attendance” bonus if he works more than 23 days in January.

The bonuses offered to workers may not seem like much to Westerners, but to factory workers they are huge sums of money. Starting salary 2,200 RMB ($315.91) per month. At its height, the factory employed his 300,000 workers.

So far, the bonus payout seems to be working, according to The Wall Street Journal. claim The Zhengzhou plant has now reached approximately 70% capacity. Factories still have ongoing COVID-19 issues, with some workers said to be working despite showing symptoms of COVID, but the overall situation is worse than it was in November. It is said to be good.

The improvement in iPhone supply is also reflected in latency, which has shrunk from 40 days to around 1-2 weeks for Pro models. Select Pro models in select colors are also now available for immediate pickup at select Apple stores.

Improving supply for the iPhone Pro series will no doubt bring smiles to Apple executives, but at the same time, demand for some iPhones, especially the iPhone 14 non-Pro models, is declining.

According to reports removed from covered South Korea macworldiPhone 14 Plus sales have been described as “well above” Apple’s lowest estimates, and Apple is considering a new strategy to reverse the trend with the iPhone 15.

Price cuts are among the strategies Apple is said to be considering. The iPhone 14 Plus starts at $899, while the iPhone 14 Pro Max has the same screen size and added features for $200 more. The iPhone 14 Pro Max is a more appealing product with its latest A16 chip, ProMotion display, telephoto camera and stainless steel design, making Apple consumers choose the Pro Max over the Plus. I’m here.

Reports that Apple is considering a new strategy for the iPhone 15 series first emerged from Apple analyst Ming-Chi Kuo. in September. “Apple will also start differentiating the iPhone 15 Pro Max and iPhone 15 Pro using precise product segmentation strategies to generate more sales/profits in mature markets,” Kuo said at the time. was

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