Apple AirPods supply to hit as one of the makers suspends production: Report

GoerTek Inc., which named neither the client nor its product, warned that decision could hit as much as 3.3 billion yuan (around ₹3,70,860 lakh) of revenue in 2022.

GoerTek Inc. plunged its daily limit of 10% after the maker of Apple Inc.’s AirPods disclosed it suspended production of an audio product from “a major overseas customer.”

The new airpods was launched in Apple's Far out event on September 23. (Apple)

The Chinese company, which named neither the client nor its product, warned that decision could hit as much as 3.3 billion yuan (around ₹3,70,860 lakh) of revenue in 2022. GoerTek, which also supplies Samsung Electronics Co. and Xiaomi Corp., said its relationship with other customers remain normal.

GoerTek’s revelation ignited speculation that Apple may be retooling a vast supply chain centered on China. On Wednesday, rival AAC Technologies Holdings Inc. surged as much as 15% in Hong Kong, the most on an intraday basis since March.

Apple and its peers are grappling with faltering demand for electronics worldwide, as consumers cut spending in the face of a potential economic downturn. It expects to produce at least 30 lakh fewer iPhone 14 handsets than originally anticipated this year. The reduction is primarily due to softer demand for the iPhone 14 and 14 Plus models, cheaper alternatives to the high-end Pro offerings.

The US company is also dealing with unexpected issues across its global supply chain, including a lockdown of its main iPhone production facility in central China.