empty
16.04.2022 02:15 PM
Apple and other manufacturers face difficulties due to restrictions in China

Analysts have warned that shipments of some Apple products, as well as Dell and Lenovo laptops, risk delays if quarantine in China due to COVID-19 persists, as restrictions force assembly shops and enterprises to close.

Apple and other manufacturers face difficulties due to restrictions in China

This image is no longer relevant

China's strong desire to stop the spread of COVID-19 has also led to congestion of highways and ports, downtime due to a lack of workers waiting for government permission to resume work - disruptions that spread through global supply chains.

Apple Inc's supplier, Pegatron Corp, said this week it would suspend operations at its factories in Shanghai and Kunshan, where, according to supply chain experts, it produces the iPhone 13, the iPhone SE series and other outdated models.

In addition, Quanta Computer Inc - the company that makes about three-quarters of Apple Macbook computers worldwide - has also stopped production, which could have a more serious impact on shipments.

The final impact on the supply chain of Apple and other multinational manufacturers is unclear and depends on factors, including how long the blockages will last. The volume of losses that threaten companies from downtime is also unclear. However, the fact that they will necessarily be reflected in the balance sheets, and in general on the GDP of their countries, is for sure.

According to analysts, the company may also consider redirecting production from Shanghai and Kunshan to factories elsewhere, such as in Shenzhen, which is currently not closed. However, this solution looks unreliable, since there is no certainty that other provinces will not be covered by new outbreaks of coronavirus.

"Apple may consider transferring orders from Pegatron to Foxconn, but we expect volume may be limited due to logistics issues and the complexity of setting up equipment," said Eddie Han, a senior analyst in Taipei. Foxconn is a trademark of Hon Hai Precision Industry Co Ltd.

According to Khan, in the worst case scenario, Pegatron could fall behind by 6-10 million iPhone units if the quarantine lasts two months and Apple is unable to redirect orders.

Apple did not respond to a request for comment.

But the heads of Huawei Technologies Co Ltd and Xpeng Inc noted the huge economic costs if the factories in Shanghai will not be able to resume production in the near future.

Recall that Shanghai is approaching the third week of quarantine, and so far there are no signs of a wide reopening.

Forrest Chen, research manager at TrendForce, believes that if the restrictions are lifted in a few weeks, there is still a chance to recover.

However, "if the lockdown lasts longer than two months, there is no way to recover. At this point, after the lock is lifted, end users will have a shortage," he said.

Some suppliers may also change the production route itself.

Unimicron Technology Corp, which manufactures printed circuit boards for companies including Apple, said that the impact of the quarantine in Kunshan is still insignificant, and that it can rely on other factories in Hubei Province and Taiwan to support production.

But logistics and transportation remain a nationwide problem as cities across China take steps to restrict communications.

One factory owner in Kunshan reported that the district government announced a protocol for reopening, but did not name a date for its implementation.

Laptop manufacturers may also be affected. These include, among others, Compal Electronics Inc, a Taiwanese company that manufactures PCs for Dell Technologies Inc and Lenovo Group Ltd at their factories in Kunshan. Chen estimates that approximately 50% of Compal's laptop production is located in Kunshan.

However, Compal representatives reported on Friday that they did not stop production in Kunshan.

Dell and Lenovo also did not respond to emails seeking comment.

It seems that the fate of reducing production awaits not only tech giants, but also other corporations that have located their facilities in China, because so far the Chinese government does not show hopes for easing quarantine measures. This will hit not only the retail of the western region, but also the Asian region itself, among other things, reducing demand for the yuan.

Egor Danilov,
Pakar analisis InstaForex
© 2007-2025
Pilih carta masa
5
min
15
min
30
min
1
jam
4
jam
1
hari
1
minggu
Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN

Artikel yang dicadangkan

Faktor manakah yang mampu mempengaruhi USD: NFP, tindakan Rizab Persekutuan, atau Rang Undang-Undang Berskala Besar?

Wall Street terus mencipta rekod demi rekod. Pada hari Rabu, S&P 500, yang didorong oleh gergasi IT, sekali lagi mencatat kemuncak baharu sepanjang masa. Pemangkin utamanya bukan sahaja lonjakan berterusan

Svetlana Radchenko 13:17 2025-07-03 UTC+2

Ringkasan Berita Pasaran AS untuk 3 Julai

S&P 500 Mencapai Paras Tertinggi Baharu Disebabkan Minat Terhadap Saham Teknologi dan Perjanjian Perdagangan Vietnam Indeks S&P 500 sekali lagi mencapai paras tertinggi sepanjang masa hasil daripada permintaan berterusan terhadap

Ekaterina Kiseleva 12:58 2025-07-03 UTC+2

Ringkasan Berita Pasaran AS untuk 2 Julai

Indeks S&P 500 menurun sebanyak 0.11%, Nasdaq 100 kehilangan 0.82%, manakala Dow Jones meningkat sebanyak 0.91%. Para pelabur sedang menantikan pelepasan data makroekonomi yang mungkin mempengaruhi keputusan dasar seterusnya oleh

Ekaterina Kiseleva 12:32 2025-07-02 UTC+2

Ringkasan Berita Pasaran AS untuk 1 Julai

Dagangan pada hari Isnin berakhir di wilayah positif: S&P 500 meningkat sebanyak 0.52%, manakala Nasdaq 100 menambah 0.47%. Permulaan separuh kedua tahun ini berlangsung di tengah-tengah jangkaan optimistik mengenai perjanjian

Ekaterina Kiseleva 11:43 2025-07-01 UTC+2

Apakah Cabaran yang Menanti Bitcoin pada Julai? Pasaran Menunjukkan Kerisauan

Bulan kedua musim panas secara tradisi dianggap sebagai tempoh yang menguntungkan untuk Bitcoin. Ada kemungkinan besar pola ini akan berulang tahun ini, dan BTC mungkin memulakan pendakiannya menuju paras tertinggi

Larisa Kolesnikova 10:58 2025-07-01 UTC+2

Ringkasan Berita Pasaran AS untuk 30 Jun

Pasaran ekuiti AS ditutup lebih tinggi: S&P 500 dan Nasdaq 100 kedua-duanya meningkat sebanyak 0.52%, sementara Dow Jones naik sebanyak 1.00%. Para pelabur menyambut baik kemajuan dalam rundingan perdagangan, yang

Ekaterina Kiseleva 11:15 2025-06-30 UTC+2

Ringkasan Berita Pasaran AS untuk 27 Jun

Indeks saham utama AS menamatkan minggu ini dengan kenaikan kukuh. Dow Jones dan Nasdaq masing-masing meningkat sebanyak 1%, manakala S&P 500 naik sebanyak 0.8%. Penyertaan pelabur yang meluas menunjukkan minat

Ekaterina Kiseleva 12:56 2025-06-27 UTC+2

Ringkasan Berita Pasaran AS untuk 25 Jun

Semangat AI Mendorong Kenaikan Pasaran Saham AS terus melonjak secara stabil meskipun risiko geopolitik dan ketegangan perdagangan masih berterusan. Indeks Nasdaq 100 mencatat paras tertinggi baharu berikutan permintaan kukuh terhadap

Ekaterina Kiseleva 12:38 2025-06-25 UTC+2

Ringkasan Berita Pasaran AS untuk 24 Jun

S&P 500 dan indeks penanda aras lain telah memulakan minggu dagangan baharu dengan momentum positif, disokong oleh penunjuk teknikal. Peningkatan ini berikutan isyarat kuat dari pengayun Marlin, mengukuhkan jangkaan untuk

Ekaterina Kiseleva 12:59 2025-06-24 UTC+2

Ringkasan Berita Pasaran AS untuk 23 Jun

Ketegangan Geopolitik Memberi Kesan kepada Pasaran Para pelabur kekal berhati-hati di tengah-tengah ketegangan yang semakin memuncak di Timur Tengah, sambil menantikan kemungkinan tindakan balas daripada Iran. Walaupun reaksi pasaran setakat

Ekaterina Kiseleva 12:31 2025-06-23 UTC+2
Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.