iPad Production Could Be Hit by Power Outages Before Launch of New Models
iPad assembly plants in China may be impacted by power outages ahead of the launch of new models in the fall, according to Apple analyst Ming-Chi Kuo.
In a tweet earlier today, Kuo commented on the effects of power outages in China's southwestern Sichuan province caused by industrial electricity rationing amid a severe heatwave.
Kuo said that the temporary power outage may affect iPad assembly facilities in Chengdu and Chongqing, operated by Foxconn and Compal. He added that it is "difficult to assess impacts on production currently," but its impact should be limited if the power outage can end on August 20. Flexible production scheduling could mitigate the effects of power outages, but it is not clear how iPad supplies may be hit if power does not return by August 20.
Kuo warned that similar incidents in the coming months could affect shipments of Apple's new devices going into the company's peak season when new products are released. Currently, next-generation iPad Pro models with MagSafe wireless charging capabilities, upgraded cameras, two new connectors, and the M2 chip, as well as the tenth-generation entry-level iPad with a new design and a USB-C port, are expected to be unveiled at an Apple event in October.
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Top Rated Comments
"Industrial users across 19 out of 21 cities in the province were ordered to suspend production from Aug. 15 until Aug. 20 to prioritise residential power supply"
Basically they shut down some factories to save power because of the heatwave so high demand doesn't cause a power outage to residences. People having power at home is more important than getting an iPad made before the deadline...
This is also linked in the main MacRumors post
I know Apple’s already been shifting production of some things out of China things to Vietnam and other SE Asian countries, I wonder if that’s going to accelerate over the next couple years
Seems to me the only benefit to moving production to Vietnam would be kicking the globalization can down the road a bit longer.
Seems like the only right choice for the world is to manufacture things in countries that treat people like people, even though we then have to pay the price.
Vietnam doesn't have a big population for Apple to churn thru like they can in China. When it comes to India which has the churnable population, the labor costs are quite a bit more. And workers in Vietnam or China can't legally strike; Indian workers can, which may lead to even more increased labor costs and even downtime.
Apple's board is beholden to their shareholders. If Apple comes back with twice the increased manufacturing charges, the shareholders aren't going to be happy.
I want Apple to leave China when it comes to manufacturing. Unfortunately they won't for the reasons listed above. Apple exists to make as much money as they can.