As a result of the ongoing pandemic, millions of people around the world have lost or left their jobs and consequently cannot afford to pay for new gadgets. It’s a tiny hardship compared to the hundreds of thousands who have lost loved ones, but it’s having knock-on effects.
Because of the reduction in demand, Apple subcontractors Foxconn and Pegatron (which also work with other major tech companies) have decided to cut back on production. According to the Financial Times, thousands of employees have been laid off and restrictions have been imposed on overtime work.
The measures are likely to be temporary, as Apple is said to have placed larger orders than usual related to this autumn’s new iPhone models. However, it will take several months for production to get going, and until then the factories will be running below normal capacity.
Apple will present a new quarterly report next week. Hopefully by then we’ll know a little more about what the next few months are going to look like.
This article originally appeared on MacWorld Sweden. Translation by David Price.
Via MACWORLD