iPad demand in China gaining momentum due to the coronavirus outbreak as it fuels the need for remote work and learning, but the tablet supply chain is being hit by shortages of raw materials, components, and labor.
E-commerce platforms are now the main conduit for consumers to buy tablets as most physical stores can hardly resume normal operations, but as tablets have sold out on many of these online shopping platforms, their prices have also gone up.
The platforms now sell 32GB and 128GB 10.2-inch iPad devices at CNY2,499 (US$355.5) and CNY3,099 per unit, respectively, CNY200 and CNY100 higher than offered at Apple stores for corresponding models…
[iPads] are assembled by Taiwan-based Compal Electronics and Foxconn at their plants in China’s southwestern city of Chengdu, with the former responsible for entry-level iPads and the latter for higher-end models iPad Pro, iPad Air and iPad mini. Their plants are running at a capacity utilization of around 30%.
MacDailyNews Take: It’s a catch-22 of running a just-in-time supply chain; demand goes up for the precise reason why supply can’t be realized. Ay yi yi. Chinese resellers who stocked up on iPad models at the first hint of an issue are looking very smart today.