It’s About To Be Much Harder To Buy iPhones
The window to have iPhones delivered is now 37 days which will extend beyond the Christmas holiday season. This stems from protests at iPhone production facilities.
Cyber Monday normally kicks off with retail companies’ stock valuations on the rise due to the increased volume of sales through the past weekend. However, there was one notable exception to this common trend which was Apple’s stock price dropping 2% on Monday. This was after reports that they are going to be seeing a production shortfall of six million iPhone Pro units over the holiday season. The current wait time to receive one of the iPhone pro models, if ordered today, is upwards of 37 days which is the longest waiting period since the model launched.
As Tell Me Best reported last week on the Foxconn iPhone assembly plant violent protests in Zhengzhou, China caused a major disruption in the factory’s ability to assemble the quantity of iPhone Pro’s needed to meet product demand. The protests were such a disruption that Apple offered to pay the protestors a full month’s salary to quit their job and then another month’s salary to board a bus to leave the factories campus.
The workers were protesting because they had a few grievances with Foxconn because of nonpayment and changing of the terms regarding their sign-on bonuses, food shortages, and the company’s failed efforts to stem a few Covid outbreaks that have occurred in the company’s dormitories.
China’s zero Covid policy is at the heart of these demonstrations not only at the iPhone assembly plant but across the entire country. The protests nationwide have prompted many residential lockdowns and business closures in many major cities. According to CNBC Foxconn said, “it will continue to communicate with employees and the government to prevent similar violent incidents from happening. It said it’s also continuing to communicate with employees about payment concerns.” Plus, the company will “try its best to actively solve the concerns and reasonable demands of employees.”
The impacts of these protests can not be understated and Apple projects that they will be able to eliminate their shortfall in 2023 with the assistance of their manufacturing partner Foxconn. CNBC also reported that Wedbush Analyst Dave Ives is predicting, “Appassionato iPhone shortages that could take off roughly at least 5% of units in the quarter and potentially up to 10% depending on the next few weeks in China around Foxconn production and protests.”
Other analysts are being more optimistic if the Foxconn plant can return to normal production capabilities in the near future that they will be able to restore the supply-demand equilibrium in a few short months.
The iPhone Pro is an extremely popular holiday gift purchase for American consumers and if they wish to have it in their hands to place under their trees in less than a month, they already needed to have purchased it. If you were thinking of this as a great gift for one of your family members for the holiday season you have already missed the boat unless you can find a store with an in-stock model already in the states waiting to be purchased. Because once those supplies run out the retailers will be getting in line and waiting over a month’s time before they get their next shipment.
