Looks like Samsung is not the only one facing supply shortage for their flagship. There have been reports claiming Apple might not have enough iPhone 7 units at launch.
Apple iPhone 7 release date has already been revealed and as the date nears, the suppliers are struggling to catch up with the demand. Since it is obvious that Apple is sticking to their usual iPhone 7 release date, the suppliers won't be able to produce on time.
Apple's suppliers are still trying to address the issue regarding the components that are missing. The high demand of the unreleased iphone 7 should be flattering for Apple, but the question is - will they be able to sustain the high demand?
Business Insider reports that Apples sales for the iPhones have been dropping for the past two quarters. Even if it seems like there is a high demand for the new iPhone 7, orders have been down by 15 percent in 2016.
Since the supplier declared the low yield rates of several components, this might not be the real reason for them missing the iPhone 7 release date. According to a report published on Forbes, one of Apple's manufacturers in mainland China - Pegatron - are not doing good. Conditions are getting worse due to excessive and illegal overtime work. China implemented a labor law that interns are not allowed to render overtime, but China Labor Watch found out that Pegatron's student interns are able to contribute an average of 80 hours per month on overtime in order to meet the demand before the iPhone 7 release date.
China Labor Watch states that Pegatron workers only receive a gross income of $213 a month, and this may be one of the reasons why the Shanghai Municipal Government bumped up the minimum wage to $330. The Pegatron workers received a raise, but the real wages they received are actually amounting to something lesser than the sum of what they previously earned. Pegatron did give its workers a salary bump, but they kept the labor costs low, decreased social support, changed the bonus structures and the compensation as well.
Since Apple's profits have been declining, the suppliers are affected by the decline big time and it resulted to exploitation of their workers. The news about Apple taking advantage of their workers before the iPhone 7 release date have reached the offices of their CEO and COO. Cook and Williams have already made a statement saying they are offended by the allegations, and now they are currently in a huge battle with BBC for suggesting expolitation of their workers.
