Apple supplier Foxconn reportedly pauses operations in Shenzhen
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Foxconn is a significant assembler AppleAfter an increase in Covid-19 cases, Apple’s iPhones has been forced to suspend operations in Shenzhen. The city was shut down once again. Wall Street Journal reported Monday.
Premarket trading saw Apple stock fall more than 1.5%
According to reports, officials have said that they will review restrictions within a week depending on the case number. The paper stated that similar suspensions in the past have been prolonged for several weeks and caused production problems across many industries.
Just days after Apple had announced their shutdown, the company has now shut down. latest slate of new productsYou can also get a low-cost iPhone.
Foxconn makes some iPhones, iPads or Macs in Shenzhen. According to an analysis by Bank of America, nearly half of all iPhones are made in Henan, as per a Monday Bank of America note. Apple could increase production in Henan to recover some of these losses.
Apple/Foxconn can relocate production to another area in the very short-term, provided there’s not a substantially longer lockdown,” wrote the analysts. An increase in shutdowns could cause ripple effects on other components, which can lead to a reduction in production.
Analysts stated that they will not reduce estimates but are cautious regarding any prolonged supply effects.