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iPad Production Could Be Hit by Power Outages Before Launch of New Models

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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.

iPad Pro Big Ol Logo Orange
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.

Related Roundups: iPad, iPad Pro
Tags: China, Foxconn, Ming-Chi Kuo
Buyer's Guide: iPad (Don't Buy), iPad Pro (Neutral)
Related Forum: iPad

Top Rated Comments

russell_314 Avatar
russell_314
47 months ago
The headline is a bit misleading and their take on the Reuters article is confusing.

"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

https://www.reuters.com/article/china-power-sichuan/update-1-chinas-sichuan-cuts-power-supply-to-industry-amid-power-crunch-idINL1N2ZR0FP
Score: 6 Votes (Like | Disagree)
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seek3r
47 months ago
The politics that dominate discussions of production locations aside it seems like there’s been, for a variety of more mundane reasons, an increase in major production problems in China lately.

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
Score: 4 Votes (Like | Disagree)
I
ILoveCalvinCool
47 months ago
This type of thing is only going to get worse as time goes by. We're still in the early stages.
Score: 3 Votes (Like | Disagree)
C
CarAnalogy
47 months ago

Where do you find a workforce which can handle Apple's demand and can work for peanuts?

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.
If China can't even keep power on to factories I wonder how much better Vietnam will be able to handle it. Admittedly I know even less about Vietnam than China but it seems they are not as industrialized but are just as authoritarian. Remember that China essentially won Vietnam just like they did in North Korea. No coincidence that they are both authoritarian and undeveloped.

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.
Score: 2 Votes (Like | Disagree)
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svish
47 months ago
Hopefully normal production can resume soon and there will not be any delay in new product launches.
Score: 1 Votes (Like | Disagree)
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_Spinn_
47 months ago

This type of thing is only going to get worse as time goes by. We're still in the early stages.
It is crazy how bad it already is. I fear what we are going to see in the future.
Score: 1 Votes (Like | Disagree)
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