Lockdowns of COVID-19 might result in the loss of 6 to 10 million iPhones

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Analysts suggest that Apple’s supply chain has been severely disrupted by the COVID-19 lockdowns in China.

There have been disruptions to the assembly of iPhones, iPads and Macs due to a suspension in Apple manufacturing at three major suppliers.

Apple’s build-to-order MacBook Pro models have already seen shipment dates pushed back.

iPhone manufacturing might be 10 million units behind schedule in the worst-case scenario.

Background


In contrast to many other countries, China is seeking to eliminate COVID-19. This is likely due in part to the fact that the country’s own vaccinations are less efficient than those used in other nations.

Apple’s iPhone assembly was temporarily halted by a shutdown last month in Shenzhen, but the corporation was able to use backup facilities and get around the restrictions on closed-loop manufacturing.

Pegatron, Quanta, and Compal have since ceased the production of Apple devices at their factories. Foxconn’s plant in Zhengzhou is still working regularly, but it’s not clear how long that will continue to be the case.

 

COVID-19 lockdowns could badly hit iPhone output


Analysts cited by Reuters say that the situation is likely to get worse.

Shipments of some Apple products, as well as Dell and Lenovo laptops are likely to face delays if China’s COVID-19 lockdowns persist, analysts said, as curbs force assemblers to shut down and closed-loop arrangements get harder to maintain.

China’s race to stop the spread of COVID-19 has jammed highways and ports, stranded workers and left countless factories awaiting government approval to reopen – disruptions that are rippling through global supply chains.

One analyst described the worst-case scenario.

“Apple may consider transferring the orders from Pegatron to Foxconn, but we expect the volume may be limited due to the logistics issue and the difficulty of equipment adjustment,” said Taipei-based Eddie Han, a senior analyst at Isaiah Research […]

As a worst-case scenario, Pegatron may fall behind on 6 million to 10 million iPhone units if the lockdowns last two months and Apple cannot reroute orders, Han said.

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