Apple Supplier Factories Reducing Staff and Cutting Overtime Due to Falling Demand

With most Apple Stores around the world closed since March 14, demand for Apple's devices has been dropping off. As a result, the factories that assemble those devices are reducing staff and cutting overtime hours, according to Financial Times.


Multiple workers at Foxconn's Zhengzhou complex, where iPhones are assembled, said that Foxconn has paused hiring and has begun cutting some of the temporary workers that it hired after ramping up production following factory closures in February.

Overtime hours have also been cut, and Foxconn has been encouraging employees to take holidays. Workers say no overtime has been worked since April 10.

Pegatron has also been cutting employees due to falling demand. Approximately a thousand temporary and third-party workers were fired, according to an employee at the factory. "The US orders are not coming, so why would we keep all the workers," he said.

Apple has begun reopening its stores, starting with a retail location in South Korea. There is no clear word yet on when stores in the United States are set to open, but Apple is aiming for May. Stores are expected to reopen on a rolling basis, with Apple taking into account local conditions and guidelines for each location.

Top Rated Comments

(View all)
Avatar
27 weeks ago
Hardly unexpected. The recession has begun.
Score: 7 Votes (Like | Disagree)
Avatar
27 weeks ago
20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.
Score: 5 Votes (Like | Disagree)
Avatar
27 weeks ago


There is no "lack of global airfreight capacity." Post a source or stop posting this nonsense.

https://www.cnn.com/2020/04/08/politics/cargo-prices-skyrocketing-medical-supplies-us/index.html


In fact, capacity has increased since passenger aircraft can be devoted to cargo. For example,

https://simpleflying.com/delta-ups-cargo-flights-to-seoul-and-shanghai/

Overall cargo capacity has significantly decreased. Pre-pandemic, around 50% of the world's cargo flew in the bellies of passenger planes. Converting some passenger aircraft to carry cargo only make up some of the shortfall.
Score: 4 Votes (Like | Disagree)
Avatar
27 weeks ago


20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.

Bolded:

That’s a bit of a stretch with your comment. Even before the pandemic/recession, Apple Products have always been expensive and unobtainable for some who never Had intention of owning those products to begin with to begin with. The iPhone SE has the perfect timing, in regards that it’s an entry-level iPhone that’s less than half the price of the most expensive iPhone, but will appeal to audiences across the world, not just in North America alone.
Score: 3 Votes (Like | Disagree)
Avatar
27 weeks ago


I'm confused. Apple just launched the SE, which seems to be in tight supply. And yet instead of making more phones, they're cutting labor? Maybe the SE is made elsewhere?

The SE2 is not in tight supply though.

There is a lack of global airfreight capacity, which is putting a strain on UPS, hence the slipping delivery dates for SE2.

If you look at China, the world's largest smartphone market and also where the SE2 is manufactured, you can have one delivered for launch day.
Score: 3 Votes (Like | Disagree)
Avatar
27 weeks ago
Analysts knows nothing. According to this article (same day), Apple is boosting production:

https://asia.nikkei.com/Business/Teleco ... ough-March ('https://asia.nikkei.com/Business/Telecommunication/Apple-aims-to-increase-iPhone-output-by-4-through-March')
Score: 2 Votes (Like | Disagree)

Top Stories

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

iPhone 12 Pro Allows You to Measure Someone's Height Instantly Using LiDAR Scanner

Saturday October 24, 2020 11:12 am PDT by
iPhone 12 Pro models feature a new LiDAR Scanner for enhanced augmented reality experiences, but the sensor also enables another unique feature: the ability to measure a person's height instantly using the Measure app. You can even measure the seated height of a person in a chair, according to Apple. When the Measure app detects a person in the viewfinder, it automatically measures their...

Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

Sunday October 25, 2020 2:59 pm PDT by
The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times. On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to ...

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

PSA: Non-iPhone 12 Models Charge Super Slowly With MagSafe Charger

Friday October 23, 2020 4:11 pm PDT by
Alongside the iPhone 12 models, Apple introduced a new $39 MagSafe Charger that's meant to work with the magnets in the iPhone 12 Pro models to charge them up at a maximum of 15W. The MagSafe Charger is technically able to be used with older iPhones, but it's not a good idea because the charging with non-iPhone 12 devices is so slow. We did two tests with the iPhone XS Max, draining the...

MagSafe Charger Teardown Reveals Simple Design With Magnets and Charging Coil Encircling a Small Circuit Board

Friday October 23, 2020 7:50 am PDT by
iFixit has today shared a teardown of Apple's new MagSafe charger for the iPhone 12 and iPhone 12 Pro. An X-ray of the MagSafe charger courtesy of Creative Electron reveals the internal charging coil surrounded by a circular arrangement of magnets within the puck. The only seam that iFixit was able to leverage to open the device was where the white rubber circle meets the metal rim,...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

iFixit Shares Full iPhone 12 and 12 Pro Teardown Revealing Interchangeable Displays and Batteries

Saturday October 24, 2020 1:48 pm PDT by
After live streaming a teardown of the iPhone 12 and iPhone 12 Pro earlier this week, iFixit today provided a more in-depth teardown that goes through all of the components in the new devices, revealing several similarities between the two. Early testing conducted by iFixit shows that the iPhone 12 and 12 Pro displays are interchangeable and can be swapped without issue, though the max...