There is another spurt in the cases of COVID-19 in China across the country. In an effort to reduce the spread, many cities are going into lockdown. It was recently reported that important Apple suppliers that manufacture Apple iPhones and MacBooks have also had to temporarily suspend their operations. Apart from Pegatron and Quanta, now production at Foxconn’s main iPhone factory is also expected to be affected due to this lockdown and restrictions.
According to a recent report bloombergThe Chinese city of Zhengzhou has imposed a lockdown near Foxconn’s main iPhone manufacturing facilities. The move is likely to affect Apple’s supply chain. Apple has been requiring employees to mandatorily take COVID testing in recent days.
Apple suppliers suspend operations in China: what will be the impact?
as reported by ReutersThe recent lockdown may result in loss of 6 to 10 million iPhone units. Since these restrictions are enforced in Shanghai and Kunshan, where Pegatron and Quanta operate, it could result in major shortages of millions of iPhones. The said Pegatron feature makes the iPhone 13, iPhone SE series, and other legacy models. The Quanta facility is responsible for manufacturing three-quarters of Apple’s MacBooks globally.
According to experts, Apple still has the option to reroute production from Shanghai and Kunshan to factories in Shenzhen, which is not currently under lockdown. For those unaware, Shanghai is approaching its third week of lockdown and there is no news of a reopening as of now.
Notably, analysts revealed that the eventual impact on Apple’s supply chain is uncertain as it depends on several factors, including how long the lockdown lasts. According to a statement by Forrest Chen, Research Manager at Trendforce Reuters, “If the lockdown goes on for more than two months, there is no way to recover already. At that point, once the lockdown is lifted, there will be a shortage for end-users.
Shipments may be delayed after Apple iPhone, MacBook as key regions go into lockdown due to COVID escalation first appeared on BGR India.