Major iPhone supplier cuts production because of COVID lockdowns

Major iPhone supplier cuts production because of COVID lockdowns

“Pegatron, one of Apple’s largest suppliers focused on certain iPhone models, said on Thursday that its production of communications devices and consumer electronics will decrease this quarter because operations at its major assembly plant in Shanghai are constrained by the citywide lockdown measures.”

What you need to know

Apple’s supply chain continues to suffer because of COVID restrictions.
iPhone maker Pegatron is cutting production in Shanghai.
Operations at its Shanghai plant are being constrained by government lockdown measures.

Apple’s supply chain has taken another hit because of COVID lockdowns, as iPhone maker Pegatron announces that it is cutting iPhone production because of restrictions.

As reported by SCMP:

Apple’s tightly managed supply chain network has taken another hit in mainland China, as Taiwanese contract manufacturer Pegatron Corp cut production at its factory in Shanghai, where a strict Covid-19 lockdown remains in force.

According to the report, Pegatron plans to decrease output this quarter “because operations at its major assembly plant in Shanghai are constrained by the citywide lockdown measures.” It didn’t offer further information on specific volumes.

One analyst told the outlet that iPhone models including Apple’s new iPhone SE, the best iPhone for those on a budget, could see a drop in production as a result.

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

Apple continues to endure disruption across its supply chain, with studies recently showing that more than half of Apple’s 190+ suppliers have operations on China’s mainland. Disturbing video footage released earlier in May showed plant workers fleeing a MacBook factory in Shanghai in protest against COVID-19 lockdown measures, with employees reportedly worried about increasing strictness of measures and positive tests on the campus.

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