China’s latest COVID-19 lockdown has seen several companies in the region once again shut down production due to the lockdown. However, industry analyst Ming-Chi Kuo has tweeted that while Pegatron has halted iPhone operations at its Shanghai and Kunshan plants and may not be allowed to restart production until late April or early May, Foxconn is so far unaffected.
(1/4) China's COVID-19 lockdown is starting to affect iPhone assembly. Pegatron, the 2nd largest iPhone EMS, has already halted assembly in Shanghai & Kunshan. In the best-case scenario, complete resumption of production may not be possible until late April or early May. https://t.co/KRviniJohq
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 11, 2022
While lockdown measures had been expected to be lifted on April 12, that date was dependent on further testing. Unfortunately, it appears the COVID spike has not flattened out.
Since Foxconn has not had its operations shut down, Kuo believes the firm can make up for the Pegatron shortfall, at least in the near future.
“Apple has the best supply chain management capabilities,” continues Kuo, “and a good relationship with the Chinese government, so I think Apple can minimize the impact of a lockdown on supply.”
Kuo also says that a long lockdown could affect consumer confidence, “and would probably be detrimental to the shipments of consumer electronics (including Apple’s products) in 2H22.”