Iphone Maker Halts Production In China Due To “COVID”

(NewsGlobal.com)- According to various sources, Apple iPhone manufacturer Pegatron has halted manufacturing in Shanghai and the surrounding city of Kunshan due to severe Covid-19 prevention efforts.
Shanghai officials have implemented strict stay-at-home restrictions as mainland China has its largest Covid epidemic since the pandemic began in early 2020. The government shutdowns, which started in late March, have posed a danger to global supply networks. It also demonstrates the dangers of Apple’s reliance on Chinese manufacturing.
According to Nikkei Asia, Pegatron assembles 20% to 30% of all iPhones. The Taiwanese business continued manufacturing until now because the Chinese government authorized select manufacturers to operate under a closed-loop system to decrease the risk of infection.
Wedbush analyst Dan Ives feels that the Pegatron closures add fuel to the roaring inferno of Apple’s supply chain and other sections of the iPhone ecosystem. This is not good news for the bulls since it exacerbated iPhone supply chain concerns when Apple was showing signs of progress.
Apple’s stock rose more than 1% in after-hours trading, indicating that investors are unconcerned with rumors of a manufacturing halt.
It’s the latest setback for Apple, unveiling a slew of new goods, including a low-cost iPhone. Foxconn, a key iPhone manufacturer, shut down completely last month. According to Reuters, it has subsequently “essentially” restored normal operations.
While most nations aspire to live with COVID-19 to some degree or another, China is striving to eradicate the disease because domestically made vaccines are less efficient than those used in other countries.
Whether it’s iPhones, automobiles, or electronics, the shutdown in China and the resulting impact on the world’s fourth-largest port, Yantian, would create shipment delays across a wide range of items and continue to affect supply chains that the epidemic has already harmed.
The Shenzhen shutdown has caused considerable disruption, the latest for the two-plus-year epidemic that has put pressure on global supply lines. Companies will need to devise alternate tactics to compensate for challenges driven by supply chain concerns, but those strategies may have run their course by this point.