How a Global Health Crisis Could Impact Apple’s iPhone Production
Explore the potential effects of recent health events on Apple’s manufacturing processes and supply chain challenges.
Apple may need to rethink its production strategies amid emerging challenges.
The majority of iPhones are assembled in China by major partners like Foxconn and Pegatron. Although their manufacturing plants are located over 500 kilometers away from Wuhan—the epicenter of the recent health crisis—these companies are still likely to experience significant disruptions. This insight comes from Bloomberg's recent report.
According to the report, approximately 10,000 employees work directly for Apple in China, with millions more involved across the supply chain for products such as the iPhone, iPad, and Apple Watch. Many of these workers were recently on leave to celebrate the Lunar New Year. It remains unclear whether Apple recommended extending this break to help contain the virus's spread. Meanwhile, Chinese authorities have imposed strict travel restrictions nationwide and have quarantined Wuhan, a city with over 11 million residents. These measures inevitably impact factory operations and supply logistics.
Foxconn has expressed confidence in fulfilling its global manufacturing commitments. The company is closely monitoring the situation and adhering to all health and safety guidelines. However, analysts warn that even a minor shortage of assembly line workers could significantly reduce the output of new iPhones or delay shipments.
Particularly at risk is the production of the anticipated budget-friendly iPhone 9 / SE 2, which has been the subject of increasing rumors. Originally slated for release in the first quarter of 2020, the launch timeline may now face adjustments due to ongoing health concerns.
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