the Covid-19 is back in China, an extremely virulent pandemic rebound which resulted in the embargo of several cities and the shutdown of entire industrial centers. Three major Apple suppliers, i.e. Pegatron, Quanta and Compal, found themselves obliged to suspend the activity of their factories, until further notice. For some analysts, this situation could end up having a heavy impact on iPhone sales, as Apple may no longer have enough inventory to meet demand.
“Apple may consider transferring orders from Pegatron to Foxconn, but we expect volume to be limited due to the logistics issue and difficulty in adjusting equipment” said Eddie Han, principal analyst at Isaiah Research. The latter even estimates that if the suspensions of activities persist, iPhone sales could be 6 to 10 million units lower than what Apple could have sold in a “normal” context. For the moment, these are still simple hypotheses, but the information that comes to us from China does not necessarily encourage optimism.