Production

Major iPhone vendor cuts production due to COVID lockdowns

Apple’s supply chain has taken another hit from COVID lockdowns, as iPhone maker Pegatron announces it is cutting iPhone production due to restrictions.

As reported by SCMP:

Apple’s tightly managed supply chain network has been hit again in mainland China, as Taiwanese contractor Pegatron Corp cut production at its factory in Shanghai, where a strict Covid-19 lockdown remains in place. vigor.

According to the report, Pegatron plans to cut production this quarter “because operations at its main assembly plant in Shanghai are limited by the citywide lockdown measures.” He did not provide additional information about specific volumes.

An analyst told the outlet that iPhone models, including Apple’s new iPhone SE, the best budget iPhone, could see a drop in production.

Pegatron was already forced to suspend production last month, and Shanghai has been under strict COVID-19 lockdown measures for seven weeks.

Apple continues to experience disruptions in its supply chain, with studies recently showing that more than half of Apple’s more than 190 suppliers have operations in mainland China. Disturbing video footage released earlier in May showed factory workers fleeing a MacBook factory in Shanghai to protest COVID-19 lockdown measures, employees are said to worry about the increasing stringency of the measures and positive tests on the campus.