The showdown at the world’s biggest iPhone factory in China has just become relevant to the world’s shoppers. Wait times for Apple’s premium smartphone models in the US have reached a record, to as much as 37 days — meaning deliveries may not be made before Christmas, according to Counterpoint Research. Although seemingly trivial, the delays are a telling sign of the current problems in global manufacturing supply chains.
Apple’s main assembly plant in the city of Zhengzhou, which makes nearly three-quarters of the world’s iPhones, including the latest 14 Pro models, is struggling with worker unrest and Covid-19 lockdowns. It is far from an isolated case. Across the country, China is dealing with one of the most significant bouts of protests in decades and a record number of new Covid-19 cases.
From here, there are two ways for Beijing to react. Authorities could stamp out further social unrest and stick to lockdowns. Or, there may be a gradual move towards loosening restrictions to appease growing discontent. The more likely scenario is the latter with analysts expecting China will now reopen its economy fully from lockdown restrictions earlier than the previously expected second quarter of 2023.