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• Pegatron to have production loss of 6 million to 10 million iPhone units if lockdowns last two months
• Quanta suppling nearly three-quarters of Macbooks worldwide, also shut operations
Shipments of Apple Inc (NASDAQ: AAPL) iPhones and Macbooks, as well as Dell Technologies Inc (NYSE: DELL) and Lenovo laptops, are expected to face delays if COVID-19 restrictions persist in China, analysts said, Reuters reported.
Beijing is racing to stop the renewed coronavirus outbreak as some cities are posting record COVID-19 cases almost daily and are still under restrictions, affecting the manufacturing supply chains.
Moreover, several factories have halted their production line as it is harder to maintain closed-loop arrangements inside the plant, disrupting the global supply chains.
Earlier this week, Apple supplier Pegatron Corp suspended its assembly plants in Shanghai and Kunshan, which produces the iPhone 13, the iPhone SE series, and other legacy models.
Quanta Computer Inc, which makes and supplies nearly three-quarters of Macbooks worldwide, also shut its operations, which could impact delivery more severely, the report said, citing several analysts.
The impact on Apple's supply chain is uncertain and depends on how long lockdowns would persist, and the Cupertino giant might also consider rerouting production to other factories like in Shenzhen, which currently is not under lockdown, analysts said.
"Apple may consider transferring the orders from Pegatron to Foxconn, but we expect the volume may be limited due to the logistics issue and the difficulty of equipment adjustment," said Taipei-based Eddie Han, a senior analyst at Isaiah Research, Reuters mentioned.
Han, while speculating a worst-case scenario, said Pegatron might have a production loss of 6 million to 10 million iPhone units if the lockdowns last two months and Apple cannot reroute orders.
Tesla Inc (NASDAQ: TSLA), which also has a manufacturing plant in Shanghai, is estimated to have incurred a production loss of 38,000 EVs till now, since March 28, when the carmaker halted its plant due to COVID-19 restrictions.
Picture Credit: Apple
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