China is witnessing yet another spike in the cases of COVID-19 all across the country. In an effort to minimise the spread, several cities are going into lockdown. It was recently reported that critical Apple suppliers that manufacture Apple iPhones and MacBooks have also had to suspend their operations temporarily. In addition to Pegatron and Quanta, now production at Foxconn’s main iPhone factory is also expected to be affected due to this lockdown and restrictions. Also Read - Apple hasn’t patch bug that leaked user data while using VPN: Report
As per a recent report by Bloomberg, Zhengzhou city in China has implemented lockdowns near Foxconn’s main iPhone manufacturing facilities. This move is likely to impact Apple’s supply chain. Apple has required staff to do mandatory COVID testing in recent days. Also Read - Apple adds 'Top Subscriber Shows', 'Top Subscriber Channels' charts for podcasts
Apple suppliers suspend operations in China: What will be its impact?
As reported by Reuters, recent lockdowns could result in the loss of 6 to 10 million iPhone units. Since these restrictions have been implemented in Shanghai and Kunshan, places where Pegatron and Quanta operate, it could result in a big shortfall of millions of iPhones. The said Pegatron facility manufactures the iPhone 13, the iPhone SE series, and other legacy models. The Quanta facility is responsible for manufacturing three-quarters of Apple’s Macbooks globally. Also Read - After iPhone 14, Apple to launch redesigned entry-level iPad: Report
According to experts, Apple still has an option to re-route the production out of Shanghai and Kunshan to factories in Shenzhen, which currently is not under lockdown. For the unversed, Shanghai is reaching its third week of lockdown and there is no news as of re-opening as of now.
Notably, analysts reveal that the final impact on Apple’s supply chain is uncertain as it depends on several factors including how long lockdowns persist. As per a statement by Forrest Chen, research manager at Trendforce to Reuters, “if the lockdown lasts longer than two months, there is already no way to recover. At that point, after lockdown lifts, there would be a shortage for end-users.
