Apple suppliers suspend iPhone production in Shanghai due to lockdown
Apple and some other major US corporations rely on different countries when they produce their devices. This procedure is in place for plenty of reasons, including the cheaper manufacturing costs when compared to American prices. However, this also comes with many disadvantages — such as not having complete control over these processes. Apple depends on several Chinese suppliers when producing its phones and computers. Unfortunately, though, China has been re-enforcing strict lockdowns due to the COVID-19 pandemic. As a result, several Apple suppliers have halted iPhone productions in Shanghai and surrounding areas. If the lockdown remains in place for a long time, the Cupertino tech giant could face some significant shortages for its products.
According to a report by NIKKEI Asia, three key Apple suppliers have suspended their production in and near Shanghai. This is due to China’s strict COVID-19 lockdowns, which have forced these factories to shut down for the time being. These suppliers include Pegatron and Quanta, two of the biggest companies Apple relies on when producing some of its devices — such as the iPhone and MacBook. Pegatron is responsible for the production of 20% to 30% of all iPhones, roughly speaking. So it can have a noticeable impact on Apple and iPhone customers.
If these Apple suppliers are forced to suspend their production for a long period of time, customers could find themselves unable to get their hands on some of the Cupertino tech giant’s devices. It’s not uncommon for shipping dates to slip when the demands are high. With some factories unable to resume their processes, this could further disrupt the balance between supplies and demands. Apple and other corporations could find themselves pressured into considering other, less convenient alternatives to resume the manufacturing. If they decide to move their operations to other, more costly countries, we will likely see price hikes across the board.
Source: NIKKEI Asia