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Strike at iPhone factory could give Samsung the advantage before holiday season

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Last updated: November 24th, 2022 at 12:47 UTC+01:00

While the demand for iPhone 14 Pro is through the roof, Apple recently revealed during its Q3 2022 earnings call that there could be supply chain issues during the holiday season. Now, the company is facing even more problems as there have been reports of massive strikes at one of the factories where the iPhone is assembled.

According to several reports, factory workers have been protesting since yesterday due to unfair wages and unsafe working conditions at Foxconn’s factory in Zhengzhou, where iPhones are assembled. Several videos show workers with masks clashing with the police. Thousands of workers reportedly gathered outside dormitories and confronted factory security workers due to lower-than-promised wages and unsafe working conditions.

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Foxconn reportedly advertised job openings across China, claiming it would pay workers CNY 25,000 (around $3,500) for two months of work. When thousands of workers from all over the country reached the factory, the company said they would have to work for four months to get the same pay. Many people left their regular jobs to travel to the iPhone factory and work there.

China has imposed strict lockdowns in several districts of Zhengzhou as the country has been reporting higher fresh COVID-19 cases. Millions of people have been confined to their homes or factories. Apple warned that iPhone 14 series would have supply shortage issues in Q4 2022, which is a severe threat to the company’s sales as many people buy smartphones and other gadgets during the holiday season.

Apple’s supply chain issues could be an advantage to Samsung

This situation with the iPhone supply chain could benefit Samsung during the 2022 holiday season. The company has already started offering great discounts and trade-in deals on almost all its popular products, including the Galaxy S22 series, Galaxy Z Flip 4, Galaxy Z Fold 4, Galaxy Watch 4, Galaxy Watch 5, tablets, laptops, and smart TVs, as a part of its Black Friday sale.

Samsung is also preparing for the launch of the Galaxy S23 series early next year. The company is expected to improve screen brightness, camera quality, processing performance, and connectivity while improving power efficiency and battery life. The company could also bring iPhone 14-like satellite connectivity to the Galaxy S23 series.

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