COVID- The number of cases of 19 is on the rise once more in China, and this could have an effect on the consumer electronics market. According to Reuters, some Apple product shipments may be delayed for a few more weeks if the lockdown continues. In accordance with government guidelines, Pegatron, Apple’s supplier in China, has already shut down its factories in Shanghai and Kunshan.
Production lines at Pegatron are reportedly shutting down for an extended period of time because the company is believed to be responsible for the manufacture of the iPhone 13, the iPhone SE, and other devices. In addition, Quanta Computer Inc., which produces three-quarters of MacBooks globally, has shut down, which analysts believe will “impact delivery more severely”. The impact on the supply chain depends on how long the lockdowns are in place.
Taipei-based Experts believe Apple could move production out of Shanghai and Kunshan and into other factories that are not currently under lockdown, such as those in Shenzhen or elsewhere in China. We expect the volume to be limited due to logistics issues and the difficulty of equipment adjustment if Apple does consider moving orders from Pegatron to Foxconn, he added.
Han also stated that “in the worst-case scenario, Pegatron may fall behind on 6 million to 10 million iPhone units if the lockdowns last two months and Apple is unable to reroute orders.”
Shanghai is approaching the end of its third week of lockdown, and there is no indication that the restrictions will be lifted any time soon. According to Forrest Chen, research manager at Trendforce, “if the lockdown lasts more than two months, there is no way to recover.” There would be a shortage of lifts for end-users at that point, following the installation of lockdown lifts. ” The lockdown could last several days, and some suppliers may be forced to reroute production to other facilities.
According to the report, laptop manufacturers, such as Compal Electronics Inc., which manufactures computers for Dell and Lenovo out of its Kunshan plants, are also likely to experience shipment delays in the near future. Compal has not yet put a halt to production in Kunshan.