Orders for some Apple products, as well as laptops from Dell and Lenovo, are likely to be delayed if Covid-19 lockdowns persist in China, analysts said. Restrictions force assemblers to close their doors and it becomes more difficult to maintain industrial processes.
China’s race to stop the spread of Covid-19 has congested roads and ports, left workers stranded and countless factories awaiting government approval to reopen — disruptions that are leading to ripple effects on global production chains.
Pegatron Corp., a supplier to Apple Inc., said last week it would suspend its factories in Shanghai and Kunshan, where supply chain experts say it makes the iPhone 13, the iPhone SE series and other models.
Quanta Computer Inc, which makes three-quarters of Apple’s Macbooks worldwide, also shut down, which could impact deliveries more severely, analysts said.
The ultimate impact on Apple’s supply chain is uncertain and depends on factors including the length of lockdowns.
The company may also consider redirecting operations outside of Shanghai and Kunshan to factories in places like Shenzhen, where there is currently no lockdown, analysts say.
Apple did not respond to a request for comment.
Chief Executives of Huawei Technologies Co. Ltd. and Xpeng Inc. signaled huge economic costs if factories in Shanghai are unable to resume production soon.
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