Apple - Factories closed in China or very slow - Kashmir

2022-06-25 03:33:30 By : Mr. Korman Luo

Following an upsurge in Covid-19, extreme containment measures are currently underway in China, particularly in Shanghai.Chinese factories are at a standstill, even if for a time the workers continued to live in their place of work.Apple is once again faced with the health crisis in the region.The production of its various MacBook, iPad and iPhone devices is slowing down.China is currently undergoing the largest epidemic surge in two years.After having confined the city of Shenzhen in mid-March, it is the turn of the megalopolis of Shanghai.Shenzhen, considered China's Silicon Valley, the lockdown was short-lived, resulting in no disruption to supply chains.For Shanghai, it's different… and Beijing would be the next big city.Today many companies, manufacturers of electronic components and subcontractors, have shut down their production lines.There are currently 161 companies affected by the pandemic in the Shanghai and Kunshan region, of which 110 work for Apple.The Taiwanese company Pegatron has three sites in China.It has just announced the cessation of its production at two factories (one in Shanghai and the other in Kunshan).After making its employees live 24 hours a day within the factory for twelve consecutive days, the latter decided to close its doors.It produces 20 to 30% of iPhones, mainly the iPhone SE 3 and the iPhone 13 mini.For now, don't worry, other factories are still working and can take over.A closure had already affected Apple production in March 2022 in the city of Shenzhen (a Foxconn group factory: iPhone production).Quanta and Compal have also stopped their production line.Quanta assembles the vast majority of Apple laptops and Compal electronics is responsible for the production of some iPads.If the situation were to continue, it would inevitably have an impact on the delivery dates of the MacBook Pro and iPad.New giant mandatory testing campaigns will be launched.This new operation raises the possibility of further closures.The industrial group Foxconn is again in danger of finding itself in the eye of the storm.The evolution of the health crisis in China over the next few weeks will be decisive.Today, the inhabitants being exhausted.The authorities have decided to start letting some residents out.But for now, the entry and exit of trucks in the city is very difficult, resulting in a difficulty of supply.The price of raw materials is rising, the various confinements and the war in Ukraine… all these cumulative factors may ultimately cause problems.The apple brand obviously wants the situation to unblock as soon as possible before it impacts its sales.But the resumption of normal production is estimated around the beginning of May, not before.Faced with these drastic measures, the major electronics companies are already beginning to think about the possible relocation of their production outside of China.Moreover, Foxconn has started assembling iPhones in India since 2017.Obviously, doubt hangs over the release of the iPhone 14 which could possibly be delayed.Production testing began last month.Manufacturing was to start next month.The latter was expected to intensify during the third quarter of 2022. The release of this product should still be spared, but we are not immune to shortages on the iPhone 13… if the health situation persists.Your email address will not be published.Mandatory fields are marked with *This site uses Akismet to reduce spam.Learn more about how your comment data is used.Site hosted on a server