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.

chinafoxconn
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

FlyingDutch Avatar
27 months ago
Hardly unexpected. The recession has begun.
Score: 7 Votes (Like | Disagree)
zubikov Avatar
27 months 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)
JPack Avatar
27 months 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)
Relentless Power Avatar
27 months 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)
JPack Avatar
27 months 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)
chabig Avatar
27 months 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)

Popular Stories

apple ar headset concept 1

Apple's Headset Said to Feature 14 Cameras Enabling Lifelike Avatars, Jony Ive Has Remained Involved With Design

Friday May 20, 2022 6:50 am PDT by
Earlier this week, The Information's Wayne Ma outlined struggles that Apple has faced during the development of its long-rumored AR/VR headset. Now, in a follow-up report, he has shared several additional details about the wearable device. Apple headset render created by Ian Zelbo based on The Information reporting For starters, one of the headset's marquee features is said to be lifelike...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
sony headphones 1

Sony's New WH-1000XM5 Headphones vs. Apple's AirPods Max

Friday May 20, 2022 12:18 pm PDT by
Sony this week came out with an updated version of its popular over-ear noise canceling headphones, so we picked up a pair to compare them to the AirPods Max to see which headphones are better and whether it's worth buying the $400 WH-1000XM5 from Sony over Apple's $549 AirPods Max. Subscribe to the MacRumors YouTube channel for more videos. First of all, the AirPods Max win out when it comes ...
studio display 3

Apple's Rumored 27-Inch Mini-LED Display Now Said to Launch in October

Friday May 20, 2022 8:07 am PDT by
Apple now plans to release a new 27-inch display with mini-LED backlighting in October due to the Shanghai lockdown, which has resulted in production of the display being delayed, according to display industry consultant Ross Young. In a tweet, Young said Apple is in the process of moving production of the display from Quanta Computer to a different supplier and/or location, resulting in a...
HomePodandMini feature green

Kuo: Apple to Release New HomePod in Late 2022 or Early 2023

Friday May 20, 2022 8:55 am PDT by
Apple is working on an updated version of the HomePod that could come in the fourth quarter of 2022 or the first quarter of 2023, according to Apple analyst Ming-Chi Kuo. Kuo says that there "may not be much innovation in hardware design" for the new HomePod, and there is no word on what size the device will be and if it will be a HomePod mini successor or a larger speaker. Apple would ...
airtag purple

Best Apple Deals of the Week: Save on AirTag, AirPods 3, and iPads

Friday May 20, 2022 8:01 am PDT by
Solid markdowns on the AirTag, AirPods 3, and a few iPad models were introduced this week, and below you'll find all of the best deals of the past few days that are still available to purchase. AirTag Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. What's the...