Does the iPhone produce less? Heavy restrictions imposed by the Chinese government on Covid-19 are affecting Apple’s production lines. China’s largest suppliers operate very limited or completely shut down.
- Apple suppliers operate either silently or have stopped production altogether.
- Pegatron is responsible for about 20-30% of total iPhone production – which has stopped production
- Other well-known manufacturers are facing similar issues due to Beijing restrictions
IPhones and other Apple products may be partially discontinued in the coming months. Why? Large subcontractors must close their production lines in China, in line with local restrictions on Covid. According to analysts’ estimates, this has already affected the production of three million iPhones.
Apple’s main supplier, Taiwanese Pegatron, has suspended production in two Chinese factories, in Shanghai and Kunshan provinces. This is expected to have an impact on Apple as the larger Cupertino team relies on Pegatron for up to 20-30% of iPhone production.
Isla isha, NAsia, he also noted that these factories are the only assembly units of the company owned by the iPhone, which means that up to 30% of iPhone production is on hold. In addition, Compal Electronics, which makes iPads and laptops, has also stopped production of Kunshan.
The impact of recent blockades will be felt throughout the segment. Other electronics manufacturers should look for similar product disruptions. Foxconn, Quanta, BizLink and others, which provide companies such as Tesla, Dell, HP and Apple, are struggling to maintain their productivity by stopping production or implementing a strict classification system.
This system ensures that production is sustained by having all the necessary personnel working and living on site, while the production line usually provides the existing reserves.
In total, more than 161 companies were affected in Kunshan and Shanghai. This will affect the supply chain of the electronics industry, which has been facing shortages and segments since the beginning of the disaster.
