The latest blocking measures COVID-19 in China they saw the Apple production blocked at three key Chinese suppliers. One of these in particular could significantly affect the availability of iPhones. The assembly of the iPhone, iPad and Mac has been suspended in the electronics manufacturing centers of Shanghai e Kushan.
Apple manufacturing in China is blocked at three key suppliers
Most countries of the world have concluded, to a greater or lesser extent, that we must find ways to living with COVID-19in the same way we live with the flu.
However, China is taking one different road. The country is using a series of measures to eradicate the virus from the country – included strict blocking measures when outbreaks occur. As CNN explained, Shanghai is the main one infection center in the country at the moment.
All residents of the city are under seizurewith national health workers e military Chinese sent to increase the response of the city.
A lockdown in Shenzhen last month forced it Foxconn a stop iPhone assembly in two factories; however a combination of exemptions for closed loop manufacturing and the company’s ability to switch to backup structures it meant that iPhone production was not severely affected.
Apple discontinued production at three other suppliers
Nikkei Asia reports that the blocks in Shanghai and Kunshan have seen the Apple production blocked at three other suppliers. These could have an impact much more significant – in particular the arrest of Pegatron.
Pegatron, the iPhone assembler, recently said that operations at its two manufacturing sites in Shanghai, and in the Chinese city of Kunshan, were suspended to comply with government regulations. These are the iPhone’s only production bases of Pegatron since the new iPhone assembly plant in India has not yet entered into operation.
At the moment Pegatron produces about the 20-30% of all iPhones.
The MacBook manufacturer, Quantaand the iPad assembler, compalare the other two suppliers concerned.
Quanta is the largest producer of notebook contract of the world. He recently confided to Nikkei Asia that he had stopped production at its key manufacturing site in Shanghai’s Songjiang district since early April, in accordance with the government’s COVID prevention measures.
Also the leading manufacturer of iPads and notebooks, Compal Electronics, has ceased operations at its Kunshan plants. There supply of components It has also been affected by dozens of other electronics companies who have similarly suspended operations in the area.
What will China do?
The impact of Pegatron’s shutdown in particular could be worryingdepending on how long the blocks will last.
A key question many are asking is whether China will be able to maintain its zero infection target. Most countries concluded that simply it is not possible to take this approachand that the most realistic strategy is that of focus on vaccination programs to reduce both the rate of infection and the severity of the disease.
However, a large part of the Chinese population has been vaccinated with locally produced vaccines which differ from those used in most of the world. The data suggests that these are significantly less effectiveand thus China may be forced to take much stricter measures to prevent the spread of COVID-19. This means we could see blocks e increasing delivery times for i company productsat least for a while.