Definitely, the management of covid in China weighs heavily on the production of headed devices.
You do not know that China is facing an impressive resurgence of the covid pandemic and that, to fight the virus, the Chinese government does not hesitate to confine cities of several million inhabitants. Obviously, Apple’s subcontractors in the quarantined areas are forced to close the factory and temporarily interrupt production.
Following this situation, Apple is encountering major supply problems and some of its products cannot be delivered for several months. We could then hope that the situation would improve and that producers could resume a usual pace, but according to Apple’s financial director, Luca Maestri, the problems currently encountered could continue.
They are struggling to return to a normal work rhythm.
According to Maestri, the various confinements in China and the shortage of silicon, a metal used in particular in the production of transistors, prevent Apple from responding correctly to demand. The shortages encountered in the first two quarters of 2022 could thus extend into the third quarter.
And these shortages and delays are going to cost Apple dearly, if not very dearly. It is estimated that these supply constraints will cost it $4 billion in the best case scenario, or even $8 billion in the worst case scenario, if the situation continues to persist. According to Tim Cook, the real problem would be in Shanghai, where factories are struggling to return to a normal work rhythm.
If, so far, only iPads and MacBooks seem to have been impacted, Tim Cook specifies that all Apple products could have longer delivery times.
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