Shenzhen site shutdown would have little impact on total iPhone production

Following the rebound of the pandemic Covid-19 in China, foxconn was forced to temporarily halt activities at its site in shenzhenwhich mainly (but not exclusively) produces iPhone. It then seemed legitimate to wonder if this suspension of production could have an impact on the future availability of iPhones, but for JP Morgan analysts, there is really nothing to panic about for Apple: “We believe that the impact of the Shenzhen shutdown on iPhone manufacturing should be limited (~10% maximum of global iPhone production), due to the low season and low production scale. in Shenzhen »thus declared Gokul Hariharan from JP Morgan in a note dated Monday, March 14.

Foxconn workers

The analyst also estimates that the Shenzhen site represents for Foxconn less than 20% of its total iPhone production capacity. The largest share of production capacity would essentially be located in Zhengzhou. Hariharan notes, however, that the production of LCD panels could be affected by the sudden shutdown of factories in Shenzhen, but that this would not really concern Apple.

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