Setback for Apple after China’s strict Covid-19 control measures

In view of the ongoing lockdown in China to contain the spread of the latest outbreak of Covid-19 has led to a setback for Apple. The supply chain of Apple has disrupted after the strict Covid-19 control measures came into effect. An Omicron outbreak in Shanghai and neighboring industrial bases have caused widespread interruptions to manufacturing activities in the Yangtze River Delta.

Apple has its second-largest assembly plant in Shanghai and Kunshan, a city in the Eastern part of China near Shanghai hosts many manufacturers like Apple suppliers Pegatron, Luxshare Precision, and more.

According to the latest updates, Taiwan’s Pegatron Corporation, a major electronics manufacturing service provider for Apple, has stopped manufacturing various devices since the city entered into lockdown a week ago.

Not only Kunshan, Pegatron has also stopped production at its assembly lines in Shanghai after the lockdown came into effect.

This closure is seen as a setback for US-based tech giant Apple as this would lead to trouble for an already fragile global supply chain.

Pegatron has been in touch with customers and vendors and communicating with local governments to resume operations as early as possible. They are also continuously evaluating the business and financial impact of the lockdowns.

Reports claim that disruptions to local manufacturing are set to worsen the logistical barriers of global companies that are already overcoming a massive shortage in semiconductors and a tight supply chain. Gaming consoles, server computers, and electric vehicles are some of the product categories that are facing further supply chain challenges, the report further said.

To reduce its reliance on the Chinese supply chain, Apple Inc has started production of the iPhone 13 in India. The phone is being produced at a local plant of Apple’s Taiwanese contract manufacturer Foxconn (2354.TW), situated in the town of Sriperumbudur in Southern Tamil Nadu state, according to a source.

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