According to the System Status page on Apple’s website, the Account & Sign In services for iCloud were disrupted on Christmas Day at 5:45 PM Malaysian time although other services within iCloud were not affected. Apple Insider reported that the service disruption has messed up the device activation process for some Apple products including iPhone, Apple Watch, and HomePod.
— Apple Support (@AppleSupport) December 25, 2020 In addition to that, some users also experienced longer waiting times to set up their iCloud account and devices while there were also users that couldn’t even get any of these to work at all. While Apple didn’t reveal the true nature of the disruption, the company did admit on Twitter that it was facing “a high capacity” which possibly means that Apple’s iCloud servers were handling more requests than usual.
Almost 36 hours after it happened, Apple finally managed to fix the issue at 5:35 AM our time according to the latest notice on its System Status webpage. So, if you were not able to set up your new Apple products that you received on Christmas Day, you might want to try again right now before sending them over to the nearest Apple Authorized Service Providers.