AirPods Production Emergency... Only Two Weeks of Parts Left
Even if the production plant restarts, 'parts' procurement issues persist
If parts cannot be procured within 2 weeks, supply shortages are inevitable
Production target of 45 million units for the first half of this year also disrupted
[Asia Economy Reporter Han Jinju] Apple’s wireless earphones, AirPods and AirPods Pro, are also facing a supply shortage crisis. Due to the novel coronavirus infection (Wuhan pneumonia), Chinese factories are not operating normally, causing disruptions in parts supply.
According to Nikkei and others on the 6th (local time), major suppliers manufacturing Apple’s AirPods, including Luxshare-ICT, Goertek, and Inventec, halted production after the Chinese Lunar New Year holiday, and even if work resumes next week, it remains difficult to procure parts from Chinese factories.
Even if factories restart production next week, they must produce using only the parts currently in stock. AirPods manufacturers currently hold about two weeks’ worth of parts and materials needed for assembly. A representative from an Apple partner company said, “It is uncertain whether work can resume smoothly. We need to observe how the situation develops next week, but if sufficient parts are not procured within two weeks, it will be a serious problem.”
Apple has been striving to increase AirPods production, but the outbreak of the novel coronavirus in China has created a variable that makes balancing supply and demand even more difficult. Within China, movement restrictions in some regions may cause labor shortages even if factories reopen. Foxconn, the iPhone assembler, announced a policy to quarantine workers returning from Henan Province for two weeks and those returning from other regions for one week.
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Apple set a goal to produce 45 million AirPods in the first half of this year alone but has encountered the major variable of the novel coronavirus. Currently, AirPods stock held in stores is gradually running low. For the more popular AirPods Pro, demand has not been met since its release, making it difficult to receive products immediately even after placing an order.
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