COVID-19 cases are also on the rise in China and that could have an impact on consumer electronics markets,Like Apple iphone Reuters, analysts predict the shipment of other Apple products will face delays if the closure lasts for several weeks.
Apple supplier Pegatron has already set up his plants in Shanghai and Kunshan, according to guidelines issued by the Chinese government.
Pegatron reportedly manufactures the iPhone 13, iPhone SE, and other products, and the prolonged closure of production lines will affect the shipment of these products.
In addition, Quanta Computer Inc, which manufactures three-quarters of MacBooks worldwide, has also shut down operations, which analysts believe will “significantly disrupt service delivery”.
The final impact on the supply chain depends on how long the lockdown closure lasts.
Taipei-based Eddie Han, senior analyst at Isaiah Research predicts that Apple may consider “re-routing the route from Shanghai and Kunshan” to factories in Shenzhen or elsewhere, which are not currently closed.
“Apple may consider transferring orders from Pegatron to Foxconn, but we expect that volume may be limited due to transportation problems and the difficulty of repairing equipment,” he said.
Han added that “in the worst case scenario, Pegatron could lag behind 6 to 10 million iPhone units if the closure closes in two months and Apple could re-issue orders”.
Shanghai is approaching its third week of closure and there are no signs of any demolition anytime soon. Forrest Chen, research manager at Trendforce, told Reuters, “if the closure lasts for more than two months, there is already no way to recover.
By then, after the Lockdown promotion, there will be a shortage of end users”. also, other suppliers are expected to reproduce production in other industries.
The report also suggests that laptop makers may face shipping delays, including Compal Electronics Inc, which makes Dell and Lenovo PCs at their plantations in Kunshan. Compal has not stopped production in Kunshan yet.
ALSO SEE: North Korean hijackers after $ 600 million crypto heist involving NFT match, FBI reports
