The situation for the Apple supply chain is getting stifled in China as another iPhone assembling zone goes into COVID-19 lockdown. Reuters reports that the city of Zhengzhou has locked down some areas near Foxconn’s iPhone manufacturing plants and that has raised concerns for Apple’s supply chain.
In March, China went under COVID-19 lockdown after over 1800 cases were reported in a single day. Since then, Apple suppliers in China are facing production delays as production is halted or reduced in the cities of Shanghai, Shenzhen, and Kunshan, Chinese manufacturing hubs. The latest health measures are expected to impact iPhone, MacBook, and iPad shipments.
Staff at the worlds’ largest iPhone assembly plant in Zhengzhou Airport Economy Zone, China to undergo regular testing
According to the report, Zhengzhou Airport Economy Zone is under COVID-19 lockdown which is the home to the largest iPhone assembling plant in China.
Local authorities announced late Friday they are placing some areas in the Zhengzhou Airport Economy Zone under quarantine effective immediately, according to a statement on its official WeChat account. People in the area will not be permitted to leave, according to the statement
A local publication reported that Foxconn plants are operating as usual in the Zhengzhou Airport Economy Zone but the staff has to undergo mandatory COVID-19 testing.
Previously, it was reported that Foxconn was permitted to resume production on a small scale under a bubble arrangement in Shenzhen, where the staff lives and works at the manufacturing plants.
If the COVID-19 lockdown in China persists for 2-months, Apple is likely to face serious production issues; Pegatron is estimated to fall behind production schedules by six to ten million iPhones.
At the Q1, 2022 earnings call, Apple forecasted a better performance for Q2, 2022 owing to ease in supply constraints. However, the company did not foresee China’s worst COVID-19 outbreak in the past two years.
