A major producer of Apple’s iPhone halted its operations at China sites. The tech leader and iPhone manufacturer took this step due to the recent lockdown in Shanghai. The technology company says that it has temporarily suspended production at two of its factories in China.
Recently Shanghai authority has announced some coronavirus regulations. According to these regulations, only some inhabitants of the city’s 25 million people are able to leave their homes for the first time in weeks. As the coronavirus infections surged in the key manufacturing and financial hub, the city authority has decided to take this precaution to prevent the infection.
Apple MacBook manufacturer Quanta and iPad maker Compal Electronics have also paused their activities in late March when the city was locked down again. The company representative mentioned that they would work with authorities and like to resume the operations as soon as possible. The tech company Pegatron said, “it had halted operations at its factories in Shanghai and nearby Kunshan “in response to Covid-19 prevention requirements from local government.”
An analyst at investment firm Wedbush Securities Dan Ives estimated that the production of 3 million iPhones will be affected due to this current lockdown. Mr. Ives said, “The Pegatron closures throw gasoline on the raging fire which is the supply chain for Apple and other parts of the iPhone ecosystem. This amplifies supply chain issues for iPhones.”