There is another spurt in the cases of COVID-19 in China. In an effort to reduce the rapidly spreading virus, many cities in China are under lockdown. It was recently reported that important Apple suppliers that manufacture Apple iPhones and MacBooks have also had to temporarily shut down 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.
Lockdown imposed near main iPhone manufacturing plant
According to a recent Bloomberg report, the Chinese city of Zhengzhou has implemented a lockdown near Foxconn’s main iPhone manufacturing plant. Apple’s supply chain is likely to be affected by this move. Apple has in recent days required employees to compulsorily take covid-tests.
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Temporary shutdown of Apple suppliers in China: what will be the impact?
There may be a loss of 6-10 million iPhone units
As reported by Reuters, the recent lockdown could result in the 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 Pegatron facility manufactures the iPhone 13, iPhone SE series and other legacy models. The Quanta facility is responsible for manufacturing three-quarters of Apple’s MacBooks globally.
Shanghai is reaching its third week of lockdown
According to experts, Apple still has the option of resending production from Shanghai and Kunshan to factories in Shenzhen, which are not currently under lockdown. Let us tell you that Shanghai is reaching its third week of lockdown and so far there is no news of reopening.
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 from Trendforce to Reuters Research Manager Forrest Chen, “If the lockdown lasts more than two months, there is already no way to recover. will be lacking.”