According to a new report, Apple may be facing a slight hitch at its iPhone and MacBook production sites in China. Most devices sold by Apple around the world are still made in China before they are shipped to another country for assembly and sale. However, the country is currently facing a crisis in the form of a new variant of Covid, which has led to the closure of several industries, factories and production lines. It seems that this affected Apple indirectly. According to Nikkei Asia, one of Apple’s main iPhone suppliers, Pegatron has suspended iPhone production. This means that the firm has stopped production of new iPhones at its facilities in Shanghai and Kunshan.
Foxconn as a backup plan
The report adds that Pegatron’s two China facilities appear to be the only two of the firm’s manufacturing facilities for iPhone components. The firm produces 20-30% of all iPhones produced. However, it is not the largest supplier of the Apple iPhone. Foxconn still produces the largest number of iPhones for the company. Although Foxconn has its base in China, it fortunately operates in other countries, unlike Pegatron. It is worth adding here that the Foxconn plant in Chennai has started production of the latest iPhone 13.
Quanta, Apple’s Macbook maker, suspends operations
But Apple’s troubles don’t end with the closure of Pegatron. The company’s other supplier, Quanta, has also reportedly suspended production lines in Shanghai since the start of this month. Quanta is responsible for the production of MacBook Air and MacBook Pro laptops. In addition, some other suppliers that are directly or indirectly connected to Apple’s supply chain have also witnessed disruptions.
We have yet to see how Apple plans to handle the situation, given that the new Covid variant has closed several factories in China and is slowly spreading to neighboring countries as well. Apple executives are likely to shed light on supply and demand constraints on April 28 when the company announces second-quarter earnings.
Meanwhile, Apple is actively promoting its product lines outside of China. With the production of the iPhone 13 at Foxconn’s Chennai plant, the company appears to have expanded its presence in the market. Its partner manufacturers, Wistron and Pegatron, also make older iPhones in the country, including the iPhone 11, iPhone 12, and iPhone SE. However, the firm still doesn’t manufacture “Pro”iPhone models in India.