Analysts predict that if China’s Covid-19 lockdowns continue, shipments of some Apple goods, as well as Dell and Lenovo laptops, would be delayed, as assemblers are forced to shut down and closed-loop arrangements become more difficult to maintain.
China’s race to contain Covid-19 has clogged highways and ports, stranded workers, and left countless industries waiting for government authorisation to reopen, causing worldwide supply chain delays.
Pegatron, an Apple supplier, announced this week that it would close its operations in Shanghai and Kunshan, where it produces the iPhone 13, iPhone SE series, and other legacy models, according to supply chain specialists.
Quanta Computer, which makes around three-quarters of Apple’s Macbooks worldwide, has also shut down, potentially affecting deliveries even more severely, according to analysts.
The long-term impact on Apple’s supply chain is unknown, and it depends on a variety of circumstances, including how long the lockdowns last.
Analysts speculate that the corporation may explore relocating manufacturing from Shanghai and Kunshan to factories in other cities, including as Shenzhen, which is not currently under lockdown.
According to Reuters, the district authority in Kunshan declared reopening procedure but did not offer a timeframe for implementation.
Compal Electronics, a Taiwanese business that manufactures PCs for Dell Technologies Inc and Lenovo Group from its Kunshan factories, may also suffer. According to Chen, Kunshan is home to nearly half of Compal’s laptop output.
Compal told Reuters that production in Kunshan had not been interrupted.
Dell and Lenovo did not respond to requests for comment via email.
