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iPhone Production Halts Amid Shanghai Lockdown

iPhone Production Halts Amid Shanghai Lockdown
Source: CBS

The latest firm to suspend operations as a result of the Shanghai shutdown is a significant maker of Apple’s iPhone.

Pegatron, a technology business, has announced that production at two of its plants in China has been temporarily halted.

On Tuesday, authorities in Shanghai relaxed some of the city’s coronavirus laws.

For the first time in weeks, some of the city’s 25 million residents will be allowed to leave their homes.

In late March, the city was shut down due to an outbreak of illnesses in the important manufacturing and financial center.

Pegatron announced in a stock market statement that it has paused operations at its factory in Shanghai and neighbouring Kunshan “in response to local government Covid-19 prevention regulations.”

“We will work with authorities to restart operations as quickly as feasible,” the business added.

According to the Japanese publication Nikkei, major Apple MacBook producer Quanta and iPad maker Compal Electronics have also halted operations in Chinese locations.

When news organizations approached Pegatron for comment, he did not provide any further information. Requests for comment from Apple, Quanta, and Compal were not immediately returned.

The shutdowns, according to Dan Ives, an analyst at investment company Wedbush Securities, will have an impact on output.

So far this month, he estimates that 3 million iPhones have been compromised, “with more to follow if this continues.”

Mr. Ives also told reporters that 2 million iPads and 1 million MacBooks might be compromised.

“The Pegatron shutdown add fuel to the roaring inferno that is Apple’s and other elements of the iPhone ecosystem’s supply chain,” he added. “This exacerbates iPhone supply chain concerns.”

Last month, Foxconn, a Taiwanese manufacturer that also assembles iPhones for Apple, ceased operations at its Shenzhen facility.

It relocated production to other manufacturing locations while continuing operations in Shenzhen with personnel living and working inside the facility in a closed loop system.

Since the epidemic began in 2019, China has imposed mass closures in key cities such as Xi’an and Wuhan, affecting millions of people.

Shanghai’s lockdown is the world’s largest to date, and the city is a major financial and manufacturing hub as well as home to the world’s largest port.