According to several analysts, Apple’s supply chain has been badly affected by the COVID-19 related lockdowns in China, with the situation getting worse by the day.
The worst-case scenario could see iPhone production behind Apple’s schedule by up to 10 million units. The reason ?
While most countries aim to live with COVID-19 with less restrictive measures, China is following a zero-tolerance path, partly because vaccines produced in the country are less effective than those used in other countries.
A lockdown last month in Shenzhen forced Foxconn to stop assembling iPhones at two factories, even though the company’s back-up facilities ensured production was not severely affected. However, assembly of Apple products has since been halted at Pegatron, Quanta and Compal facilities. Foxconn’s Zhengzhou facility is still operating normally with additional COVID-19 precautions, but its duration is uncertain.
According to analysts quoted by Reuters, the situation is likely to worsen:
“Shipments of some Apple products, as well as Dell and Lenovo laptops, will likely be delayed if China’s COVID-19 lockdowns persist, as lockdowns force assemblers to close factories and those loopholes become more difficult to enforce. maintain.
China’s rush to stop the spread of COVID-19 has blocked workers, highways and ports, and left countless factories awaiting government approval to reopen.
Apple might consider moving orders from Pegatron to Foxconn, but that could only limit the damage. »
In the worst-case scenario, Pegatron could be left behind by 6-10 million iPhone units if the lockdowns last two months as Apple still fails to redirect orders.