Sunday, October 1, 2023

Apple in trouble, new delays?

China recently imposed a local blockade in the city of Zhengzhou. This region is close to the Apple iPhone manufacturing site, which has raised concerns about the company’s smartphone supply chain.

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According to a Bloomberg report, certain areas in the economic zone of Zhengzhou Airport have been placed under the quarantine zone. In other words, people living in the area are not allowed to move outside their homes.

Furthermore, this airport economic zone is also the location of Foxconn’s largest iPhone assembly plant. For those unaware, the Taiwanese company is the largest supplier of the iPhone giant from Cupertino. Thus, local closures can very well affect iPhone production.

Otherwise, China is implementing extreme isolation measures, ie measures against the spread of coronavirus infection. Citizens are forced to stay in their homes, and in the event of leaving their place of residence without the approval of local authorities, they face astronomical penalties.

Notably, the blockades come after employees began undergoing mandatory testing at COVID. In addition, the country is implementing isolation measures in an attempt to curb the spread of the coronavirus epidemic.

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Although iPhones have not been directly affected so far, there is already a problem with the shortage of MacBooks. Apple’s other vendors like Pegatron and Quante also recently halted production on the east side of China because of these quarantines.

Just last month, even Foxconn was forced to halt production from its Shenzhen plant for a few days after a blockade was imposed across the city. And now it seems that a similar incident could be repeated due to the growing number of COVID cases. But it remains to be seen whether production will stop in this region as well.

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