Widespread Power Outages in China Have Apple Suppliers 'Scrambling' to Keep Production on Track

Apple suppliers in China are scrambling to keep production on track ahead of the busy holiday season in the face of widespread power outages in the country, according to a new report from Nikkei Asia.

chinafoxconn

Widespread power outages in China are reigniting a push by tech manufacturers to shift production away from Asia's biggest economy, with suppliers to Apple, Amazon and others scrambling to keep production on track ahead of the busy holiday season.

At a midsize electronics accessories maker in Zhongshan, Guangdong Province, power outages have become the new normal.

One source who spoke to Nikkei said power outages had been sporadic since mid-September, but that now they get notice every week telling them which days the following week that power will be cut. Apple suppliers have reportedly already warned that power cuts threaten supply chain continuity, but concerns have grown that the disruption will last until the end of the year or longer.

Suppliers are also reporting a lack of clarity over who will receive power and who won't from one week to the next.

"It is very chaotic and confusing. Some suppliers managed to secure power supplies based on their friendly relations and negotiations with the local governments, while some were affected badly," an executive at an Apple supplier told Nikkei Asia.

Many large Chinese tech suppliers, such as emerging iPhone assembler Luxshare and its subsidiaries across different provinces, were also spared from the power suspension, according to three people familiar with the matter.

Another unnamed Apple supplier said that local governments are deciding who to give electricity to based in part on the value of the products being made.

Apple is looking to boost initial production of this year's ‌iPhone 13‌ models to 90 million units through the end of the year, an increase of up to 20% over the 75 million units of the iPhone 12 series produced last year, according to Bloomberg. There are also reports that initial stocks of Apple Watch Series 7 will be limited, but we won't know for sure until Apple opens pre-orders later today.

Top Rated Comments

Corsig Avatar
15 months ago
When are we going to stop relying on China for everything
Score: 43 Votes (Like | Disagree)
Obioban Avatar
15 months ago

What is causing the outages? Lack of fuel? lack of power plants? infrastructure issues?
China got mad at Australia for requesting an investigation into the origins of of Covid and cut off their coal exports as punishment. Australian coal burns more efficiently than much of the rest of the worlds, and Chinese coal plants have been tailored to it-- they can't turn a profit without it. The CCP has a price cap on what power plants can charge for power, so they can't increase prices-- so if they produce power with less efficient coal, they lose money. So, instead they have turned off the power plants.
Score: 29 Votes (Like | Disagree)
Quu Avatar
15 months ago
What is causing the outages? Lack of fuel? lack of power plants? infrastructure issues?
Score: 16 Votes (Like | Disagree)
haunebu Avatar
15 months ago
Stop making everything in China, Apple.
Score: 15 Votes (Like | Disagree)
Bustycat Avatar
15 months ago
It’s President Xi’s millennium plan.?
Score: 12 Votes (Like | Disagree)
h3ysw5nkan Avatar
15 months ago

Probably not any time soon. It's hard to find a country with an excess supply of cheap labor. China has 1.6 billion people. Pretty hard to find that anywhere else.
It's no longer about cheap labour. China's labour is not cheap anymore. It's because no other country has a complete industrial system like China.

Also, China no longer has 1.4 billion people. The real number is probably closer to 1.2 billion, and continue to shrink due to fertility policies.
Score: 10 Votes (Like | Disagree)

Related Stories

applesupplierreport

Apple Publishes 2021 Supplier Progress Report

Monday May 31, 2021 3:27 am PDT by
Apple has published its annual supplier responsibility report, which outlines the progress it and its suppliers are making towards improving the rights of workers, furthering environmental protection goals, the response to the global health crisis, and more. The report contains detailed information ranging from how Apple addresses reports of violations within its supply chain to how the...
Apple clean energy climate change solar

Apple Announces 10 New 'Power for Impact' Projects to Tackle Climate Change

Wednesday October 27, 2021 6:09 am PDT by
Ahead of the 2021 United Nations Climate Change Conference, also known as COP26, Apple today announced that it is adding 10 new projects for its "Power for Impact" initiative, which looks to bring clean energy solutions to communities around the world, and has more than doubled the number of its suppliers committed to using 100 percent clean energy over the past year. Apple announced its...
AppleVsFoxconn Feature 2

Apple Supplier Foxconn Forced to Suspend Operations in Shenzhen Due to Lockdown

Monday March 14, 2022 2:12 am PDT by
Apple's leading supplier, Foxconn, has been forced to suspend operations in Shenzhen, China, following a city-wide lockdown that sees nonessential businesses close, public transportation halted, and residents advised not to leave their home unless for essential activities only. As Nikkei Asia reports: Shenzhen is home to major tech companies such as Huawei, Oppo and TCL, and is also one of ...
craig wwdc 2021 privacy

Report Highlights How Top Apple Executives Disagreed Over How Far iOS Anti-Tracking Measures Should Go

Monday March 14, 2022 7:19 am PDT by
A new report has highlighted how three top prominent executives initially found themselves at odds in early deliberations about Apple's App Tracking Transparency framework. According to the report from The Information, the executives who disagreed over how far Apple should go in protecting user privacy in digital advertising included Apple's Craig Federighi, who oversees software...
OLED iPad Pro Feature

BOE to Manufacture Up to 15-Inch OLED Displays Aimed for Future iPads

Sunday January 9, 2022 5:23 pm PST by
Apple supplier BOE recently converted one of its factories in China in order to manufacture larger OLED displays for devices beyond smartphones, including tablets and computers, according to Korean website The Elec. The report claims that BOE is likely aiming to supply OLED displays for future iPads, after becoming a supplier of iPhone 13 displays last year. The repurposed factory will be...
iphone 13 pro max display bleen

Largest iPhone Supplier Says Chip Shortage to Drag Into Second Half of 2022

Friday November 12, 2021 8:08 am PST by
Major iPhone supplier Foxconn says that it expects the ongoing chip shortage to continue well into the second half of next year, prolonging struggles of manufacturers, including Apple, to keep up with consumer demand, The Wall Street Journal reports. Apple has been dealing with the chip shortage for the past several quarters, but it only started significantly impacting Apple’s business in...
What to Expect Apple 2022

Apple Building Momentum for 2022 Releases as Supply Chain Recovers

Monday January 10, 2022 8:40 am PST by
Apple's supply chain is finally recovering from shortages as it prepares for a slate of new product launches in 2022, DigiTimes reports. In a paywalled report, DigiTimes claims that Apple's supply chain partners are expected to "remain in high gear" through February 2022 as demand for the latest iPhone, iPad, and MacBook Pro models remain strong. Apple faced severe component shortages and...
apple park solar

Apple Suppliers Struggling to Meet Environmental Goals

Tuesday January 18, 2022 7:29 am PST by
Apple's strict environmental goals are putting pressure on the company's global supply chains, DigiTimes reports. In a paywalled report, DigiTimes claims that Apple's goal of achieving carbon neutrality by 2030 is putting pressure on its supply chain, with major suppliers such as TSMC scrambling to meet the company's demands. Sources speaking to DigiTimes said that TSMC was making slow...

Popular Stories

iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
iOS 16

When Will iOS 16.2 Be Released?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
apple ar headset concept 1

Kuo: Apple Headset Shipments Potentially Delayed Until Second Half of 2023

Sunday December 4, 2022 7:38 am PST by
Mass shipments of Apple's long-rumored AR/VR headset may be delayed until the second half of 2023 due to unspecified "software-related issues," according to the latest information shared today by tech analyst Ming-Chi Kuo. Apple headset render by Ian Zelbo Kuo said mass shipments of components for the headset are still likely to begin in the first half of 2023, but he believes that mass...
Emergency SOS via Satellite iPhone YT

Apple's iPhone 14 Emergency SOS via Satellite Feature Saves Stranded Man in Alaska

Thursday December 1, 2022 4:37 pm PST by
With the launch of iOS 16.1, Apple rolled out a Emergency SOS via Satellite, which is designed to allow iPhone 14 owners to contact emergency services using satellite connectivity when no cellular or WiFi connection is available. The feature was put to the test in Alaska today, when a man became stranded in a rural area. In the early hours of the morning on December 1, Alaska State Troopers ...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Pro Rumored to Have These 5 Exclusive Features

Saturday December 3, 2022 10:55 am PST by
While we're still around nine months away from Apple unveiling the iPhone 15 lineup, rumors already suggest that the higher-end Pro models will have even more exclusive features than usual compared to the standard models next year. There are currently at least five features rumored to be exclusive to iPhone 15 Pro models:A17 chip: iPhone 15 Pro models will be equipped with an A17 Bionic...
top stories 3dec2022

Top Stories: M2 Max Benchmark Leak, iPhone 15 Camera Rumor, and More

Saturday December 3, 2022 6:00 am PST by
With Black Friday and Cyber Week shopping events winding down and the calendar flipping over to December, our attention is starting to turn to 2023 and all of the Apple news we're expecting to see. This week saw an alleged benchmark leak for an "M2 Max" chip expected to make an appearance in upcoming Macs like the MacBook Pro early next year, as well as fresh rumors about the iPhone 15...
android apple fix rcs

Google Again Criticizes Apple for Not Adopting RCS for Messages App: 'Their Texting is Stuck in the 1990s'

Friday December 2, 2022 10:54 am PST by
Google is continuing on with its attempt to convince Apple to adopt the RCS messaging standard, publishing a new "it's time for RCS" blog post. Promoted heavily by Google, RCS or Rich Communication Services is a messaging standard that is designed to replace the current SMS messaging standard. It provides support for higher resolution photos and videos, audio messages, and bigger file sizes, ...
maxresdefault

Can't Get an iPhone 14 Pro? Here's Why You Should Wait for the iPhone 15 Ultra

Monday December 5, 2022 11:44 am PST by
Due to production issues at Apple supplier factories in China, the iPhone 14 Pro and iPhone 14 Pro Max are backordered and basically out of stock at every store. If you were planning to gift or receive an iPhone 14 Pro model for the holidays and didn't already get one, you're basically out of luck because they're gone until late December. Subscribe to the MacRumors YouTube channel for more ...