Invincible coronavirus has already caused the cancellation of two significant events for the world of technology and for some time have forced many brands to stop production of branded electronics. Apple so far has had to close all their stores on the territory of China, where the coronavirus brutal to most actively. As a result, the company was even forced to change its forecast for revenue, advance notice to investors. Therefore, it was logical to expect that all this will lead to a real panic among users who have decided that since manufacturing in China is up, then expect shortages and steadily increasing prices on Apple products. Explain on fingers why it is not.
- 1 do the Foxconn factories
- 2 What happens to the factories Apple in China
- 3 As Apple struggles with coronavirus
- 4 As the coronavirus affect Russia
- 5 Will there be a shortage of iPhone
- 6 Where are the Apple factories
Do the factories Foxconn
Indeed, in early February, Apple was forced to stop production of its products due to the coronavirus. The stop occurred due to the closure of all the factories in China, including 12 Assembly lines of Foxconn. However, for the Assembly of the iPhone answered only two plants in Zhengzhou and Shenzhen. This is the largest line of Foxconn, which produce almost all of the iPhone in China. Probably, therefore they are exceptionally this week, it was decided to open. The causes of their discovery were not disclosed, but, apparently, the impact of the distance of the plants from the hotbed of the spread of coronavirus in Wuhan.
Quite revealing is the desire to resume Foxconn’s first manufacturing technology that is Apple. Despite the fact that some employees who had to go to the Assembly, refused to do so, Foxconn management promised to pay them a bonus in the amount of 7000 yuan, or about $ 1,000. It’s quite a lot of money, given that only factories in Zhengzhou and Shenzhen employs more than 400 thousand people. However, this is a justified step, because to receive this amount collectors will have to fulfill not less than 60 days. What will happen when this period expires, it is not very clear, but for Apple in the current environment, it could be a real salvation.
What happens to the factories Apple in China
Yes, iPhone is not the only Apple product, but the Assembly of the Apple Watch and MacBook deals factory Quanta Computer, which has power not only in China but also in Taiwan, which has become a lifeline for the Corporation. Taiwan power almost immediately was ready to take the vacant load, though not completely.
The question remains open for AirPods and iPad. But if the iPad is manufactured by Foxconn and will likely end up in the same wave as iPhone, but with headphones everything is very vague. Their release is mainly doing plants GoerTek and Luxshare ICT that have not made an official announcement on the opening of the Assembly lines, fearing that any comment without the knowledge of the government of China.
But then to the rescue came Tim cook. Tonight Apple CEO gave an interview to Fox Business and announced that the company will re-build brand electronics in China and is preparing to make up for lost sales. He did not specify, whether to resume production at all of the equipment or any part of it, but, according to him, the situation of coronavirus is under control.
As Apple struggles with coronavirus
That situation is really under control, illustrated by the example of his own Apple stores in China. Despite the fact that 13 of them had not yet opened, 29 pavilions are already working, albeit on a reduced schedule only 8 hours a day.
For this the company had to consider stringent measures and precautions. Besides the fact that visitors to measure the temperature at the entrance, before entering the Apple Store, they are required to disinfect hands with a specially installed system and give them medical masks.
Same procedure for disinfection must pass before exiting the shop, and after each visitor, all the devices displayed in the Windows, a mandatory order processed alcoholic solution. This is done in order to kill the virus, if it came to the surface of the gadgets, and to prevent its spread, because he, according to the scientists who are able to live in an open environment to 9 days.
As the coronavirus affect Russia
With China, we seem to be sorted out. And what about Russia?
And Russia, apparently, is also okay. Despite rumors of the impending shortage of the iPad, in the vast majority of commercial networks there is no such thing. Take the same AirPods. If you order on the official Apple website they will be delivered in 2-3 weeks. It’s even faster than it was before the new year, when delivery was required 4-5 weeks. In regional shops “M. Video”, “Eldorado”, the “Citylink” and DNS the situation is even better available either for purchase or for delivery. In this case, the headphones will bring in 5-7 days. Moreover, in all stores from this list, you can get a discount, taking advantage of bonus points, which are usually handed out right and left. The one with the other as something not very fit, don’t you think?
Will there be a shortage of iPhone
With the iPhone there is roughly a similar pattern. Despite the fact that some readers of our chat in Telegram reported, recommending to all who have legs to flee the store and bought iPhones because they will soon be more valuable than gold and US Treasury bonds, it is not. First I store – DNS – offers iPhone 11 Pro 64GB for 84 990 rubles. And this, incidentally, is 5 thousand cheaper than Apple. It’s kind of wrong to have a deficit.
Where are the Apple factories
It turns out that the rumors about the death of Apple greatly exaggerated. Even if the company had to leave China, its Assembly partner Foxconn – has a huge number of factories around the world. Except China, they are located in Mexico, Brazil, Taiwan, India, UK, USA, Japan, Czech Republic, Hungary and Vietnam. In some of these countries labour costs are quite cheap, which means that all that is required from Apple in case of Declaration of a pandemic and re-stop production capacity in China is to change logistic scheme and guide components for Assembly iPhone and other gadgets to Vietnam, India or Brazil.
Summarizing all said above, we should admit that the coronavirus caught Apple by surprise. Despite this, from the very beginning it was obvious that the company will handle it and come out of the situation winner. It is difficult to imagine that a small, simple plants could force Apple to go through the world. Moreover, to produce products strictly on demand – this is not about her, so companies like it, always have a backup plan, and sometimes not even one. If you remember, a couple of months ago in Cupertino quite considered the possibility of the transfer of Assembly capacity from China in principle, but would not pay import duties when importing equipment to the USA. So the company was ready to spare a springboard where you can easily navigate.
PS No catastrophe happened. So just relax.