Apple iPhone maker Pegatron suspends production in Shanghai because of Covid outbreak

An employee arranges Apple iPhones as customer shop at the Apple Store on 5th Avenue shortly after new products went on sale in Manhattan, in New York City, March 18, 2022.

According to multiple reports, Pegatron has stopped production in Kunshan and Shanghai due to strict Covid-19 prevention measures.

The worst Covid outbreak in mainland China since the initial phase of the epidemic in early 2020 has led to stringent stay-at- home measures being imposed. The government lockdowns that began in late March have the potential to disrupt global supply chains. The risks associated with Apple's reliance on manufacturing in China are shown in the 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846 888-666-1846

20% to 30% of all iPhones are assembled by Pegatron. The Chinese government allowed some manufacturers to keep operations going via a closed-loop system to reduce the chances of infections, so the company was able to continue production.

The supply chain for Apple and other parts of the iPhone is in a raging fire, according to an email from an analyst.

The shares of Apple were up more than 1% in the morning, suggesting investors aren't concerned about the reports of production suspension.

It's the latest hit to Apple, which just announced its latest slate of new products, including a budget iPhone. Last month, Foxconn, a major assembler of iPhones, stopped operations. It has since resumed normal operations.

The production line would be adjusted to other locations to minimize the impact. According to a Bank of America research note, almost half of the Apple products are produced in a factory in China. The only active iPhone manufacturing facilities are in Kunshan and Shanghai. According to the report, its new plant in India has not yet begun operations.

Apple didn't comment. A request for comment was not immediately responded to.

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