Connect with us


Apple, Dell, and Lenovo are among the companies facing shipment delays due to China’s COVID-19 curbs.



As a result of China’s COVID-19 lockdowns, some Apple products and Dell and Lenovo laptops may not be shipped for a while. As a result of the lockdowns, assemblers have to stop working, and closed-loop arrangements become more difficult to keep.

In China’s race to stop COVID-19 from spreading, roads and ports have been jammed, and workers have been stranded, leaving many factories waiting for government approval to reopen. These disruptions have rippled through global supply chains, making it hard for people to buy things.

Pegatron, a supplier for Apple, said this week that it would close its plants in Shanghai and Kunshan, making the iPhone 13, the iPhone SE series, and other older models.

Analysts say that Quanta Computer Inc., which makes about three-quarters of Apple’s MacBooks globally, also shut down. This could have a more significant impact on deliveries, they say.

The final impact on Apple’s supply chain isn’t clear, and it depends on how long lockdowns last.

Suppose the company decides to move production out of Shanghai and Kunshan to factories in other cities, like Shenzhen, which is not currently under lockdown. In that case, it might also think about moving production to other factories.

It’s possible that Apple could move the orders from Pegatron to Foxconn. Still, we think the volume will be limited because of the logistics problem and the difficulty of moving equipment. Eddie Han, a senior analyst at Isaiah Research in Taipei, said this: Trade name: Foxconn is a name used by Hon Hai Precision Industry Co Ltd, a company that makes parts.

Apple might not be able to change orders for 6 million to 10 million iPhones for two months, Han said. If that happens, Pegatron might be behind on 6 million to 10 million iPhones, Han said.

Apple didn’t answer a question about what they were doing.

The CEOs of Huawei Technologies and Xpeng have said that if factories in Shanghai don’t start making again soon, it will impact the economy.

Shanghai is nearing the end of its third week of lockdown. There has been no sign of a wide reopening.

He said that if lockdowns end in the next few weeks, there is still a chance to get back on track.

Even so, “After two months of being locked down, there is no way to get out of it. Afterward, there would be a shortage of end-users “.

A few suppliers might be able to change the way they make things.

So far, there has been little impact from the lockdown in Kunshan on Unimicron Technology Corp, which makes printed circuit boards for companies like Apple. It says it can use other plants in the province of Hubei and Taiwan to keep production going.

But logistics and transportation are still a big problem in China, as cities across the country take action.

One factory owner in Kunshan told Reuters that the district government had set rules for reopening but didn’t say when they would start.

Compal Electronics Inc., a Taiwanese company, which makes PCs for Dell Technologies and Lenovo Group from its plants in Kunshan, may also be hurt. Chen thinks that about half of Compal’s laptops are made in Kunshan.

Compal told Reuters on Friday that it had not stopped making things in Kunshan. Dell and Lenovo did not respond to emails that asked for comments.