The recent resurgence of COVID-19 cases in China and subsequent lockdowns in the country’s manufacturing hubs, Shanghai, Kunshan, and Shenzhen, are going to impact Apple’s iPhone and MacBook productions. Nikkie Asia reported that Apple suppliers Pegatron, Quanta, and Compal suspend production of iPhone and MacBook at their facilities.
In March 2022, China recorded more than 1800 coronavirus cases in a day and imposed a complete lockdown in the cities of Shenzhen and Shanghai. Initially, Apple suppliers like Foxconn, General Interface Solutions (GIS) Holding, Unimicron, and others were ordered to shut down their manufacturing plants, but later Foxconn resumed production on a small scale in Shenzhen under a closed-loop system.
However, the situation got worse in China, and in April, another city ‘Kunshan’ was placed under lockdown. Apple’s major suppliers are based in Kunshan, which have been ordered to halt production since April 2.
COVID-19 lockdowns in Chinese manufacturing hubs, Shanghai and Kunshan impact Apple’s supply chain
According to the report, Apple suppliers based in Shanghai and Kunshan have halted production on governments directives.
- Pegatron – iPhone assembler
- Quanta – MacBook manufacturer
- Compal Electronics – iPad assembler
- Luxshare Precision Industry – iPhone assembler
Although the Apple suppliers have told Nikkie Asia that production at their facilities will resume soon, the disruption is likely to have an impact on the company’s supply chain.
Pegatron, the iPhone assembler, said in a stock exchange filing on Tuesday that operations at its two production sites in Shanghai and the Chinese city of Kunshan have been suspended to comply with government regulations. Pegatron makes roughly 20% to 30% of all iPhones.
Quanta, the world’s biggest contract notebook manufacturer and a key MacBook maker, has halted production at its key manufacturing site in the Songjiang district of Shanghai since the start of April in compliance with the government’s COVID prevention measures.
Major iPad and notebook maker Compal Electronics also has halted activities at its Kunshan facilities, according to the company.
At the Q1, 2022 earnings call, the tech giant said that supply constraints will ease in the coming quarter and the company would have a better performance in Q2, 2022. However, it did not foresee the impact of COVID-19’s outbreak in China. The tech giant will publish Q2, 2022 on April 28.