Apple’s Shanghai troubles

Apple’s Shanghai troubles

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Thought we were done with Covid-19 and its worst days? Think again! The victim today? Apple (APPL).

Technology company and major Apple iPhone producer Pegator has announced its pause on production in two factories in China. As China practices strict zero-covid measures, lockdowns have been in place in various Chinese cities including Shanghai and neighboring Kunshan.

Pegatron, among many companies, has been pressured to halt operations even as the city moves to slowly ease restrictions. The two closed production sites are the only Pegatron sites that manufacture iPhones and total roughly 20-30% of all global iPhones produced. That translates to about 3 million paused iPhones this month, as just the beginning. Apple has been dealing with constrained supply chains for a while now — but, man, the tech company really deserves a break. To anyone looking to purchase an iPhone, apologies. Perhaps try Samsung?

Why it matters

Pegatron is the latest blow for Apple. MacBook supplier, Quanta has paused production. iPad manufacturer Compal Electronics has similarly halted its Chinese productions. Let’s hope the Apple Watch stays safe.


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