IPhone maker Pegatron suspends production in Shanghai due to Covid
Shortly after Apple iPhones were launched in Manhattan on March 18th, 2022, an Apple employee organized Apple iPhones for customers at 5th Avenue’s Apple Store.
Mike Segar | Reuters
AppleAccording to multiple reports, Pegatron has said that it had stopped manufacturing in Shanghai and Kunshan because of strict Covid-19 protection measures.
Shanghai officials have made it mandatory to stay at home. mainland China faces its worst Covid outbreak since the initial phase of the pandemic in early 2020. These government lockdowns began in March and threatened to interrupt global supply chains. This shows how Apple’s dependence upon manufacturing in China poses risks.
Pegatron builds approximately 20%-30% of all iPhones. Nikkei Asia reported. The Chinese government permitted some Chinese producers to maintain production in order to lessen the chance of getting infections. Bloomberg reported.
CNBC was informed by Dan Ives (Wedbush analyst), that Pegatron’s closures have added fuel to the fire, which is the supply-chain for Apple. The bulls don’t want this news, because it increases supply chain problems for iPhones as Apple had been seeing improvement.
Apple shares rose more than 1% this morning, suggesting that investors don’t worry about production interruption reports.
Apple has just revealed its latest success, the Apple iPhone 5. latest slate of new productsA budget iPhone is also available. Foxconn is a large iPhone manufacturer. suspended full operations. Since then, it has “basically” resumed normal operations. according to Reuters.
Foxconn said at the time that it would relocate its production to another location to lessen the damage. According to an analysis by Bank of America, almost half of iPhones are made in Henan. According to Nikkei, Pegatron has only two active manufacturing plants for iPhones: Kunshan and Shanghai. According to Nikkei, the new Indian iPhone manufacturing plant has yet not started operation.
Apple has declined to comment. Pegatron has not yet responded to my request.