The demand for iPhones has been quite great this year. The global economic crisis has had reasonable amount of impact on a lot of tech companies. By the third quarter of the year, most companies recorded losses in their year-over-year earnings. Apple on the other hand recorded profit even though its percentage gain declined.
With the launch of the iPhone 14 series this year, it was expected that the demand for iPhones would even get higher. As expected, the demand for iPhones keep growing. Which also means that, there will be more work at the manufacturing factory.
This has resulted in unrest at Apple’s largest manufacturing plant, Foxconn in China. Most workers especially New recruits at Foxconn had to work throughout the week. In order to meet the high level of demand in iPhones.
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Foxconn Paid Compensation To Workers To Resign From iPhone 14 Series Production Factory
As a result of that, there were protests at Foxconn’s manufacturing plant. Which escalated into a clash with the securities at the company. Reports also has it that, Foxconn has offered the new recruits a compensation. An amount of $1,400 to resign and leave the company premises.
This compensation has lead to about 20,000 new recruits resigning from the company with immediate effect. This will go the long way to affect the company’s production as well as supply this year.
According to reports by Bloomberg, Apple’s iPhone 14 Pro models will see an estimated 6 million units of production decline. This will result in a short of these iPhone models. Especially as the holiday season is just around the corner.
Foxconn is the world’s largest manufacturer of smartphones for Apple. It specializes in the production of the pro models of the iPhone 14 series. This is the reason why the shortage may only affect the pro models.
Apple Confirmed Delay In The iPhone 14 Series
Earlier this month, Apple issued a statement confirming the delay of the iPhone 14 Pro and the iPhone 14 Pro Max. This is due to low daily output of production.
Retail outlets such as Best Buy has also announced that. There may be shortage of the iPhone 14 Pro and Pro Max this holiday season. The production of the iPhone 14 and the 14 Plus is also down by 3 million units. This however, is due to low in demand for these models.