Apple Is At Risk Of Low Supply & Limited Productivity | The Perils Of Outsourcing Manufacturing.
Apple is in trouble with manufacturers because they have been rationing energy consumption. This is a big problem for Apple because it is one of its biggest markets in China.
The Department of Energy has released a statement saying that they are prioritizing residential uses and limiting commercial/industrial uses to conserve energy. They do this to protect from outages due to the heatwaves in China over the 2022 summer.
This cascade of events has the ability to affect long-term business costs associated with a disruption in productivity loss & limited supplies. In the case of Apple, the Foxconn facilities in some regions of China are most affected by selective energy uses because of their manufacturing of many Apple devices such as iPhones & iPads.
Foxconn is one of the world's largest manufacturers, with a reputation for being a central hub of Apple's labor manufacturers.
One of the issues most notably with this event in international outsourcing gives companies like Apple less internal control to deliver products efficiently & competitively priced to consumers.
Relying on third-party providers has the potential to hamper customer experiences due to less direct access to meditating. The cost-benefit of outsourced manufacturing is cheaper supply costs in exchange for cheaper labor & international shipping limitations.
With a stricken supply chain high in costs & deprived of laborers, products traveling overseas already has driven the cost of many products up.
The iPhone 14 is the next available Apple product to continue the Apple hype dynasty. The future challenges of logistical disruptions affect global consumerism & shed light on the perils of outsourcing labor.
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