What you need to know
- Apple suppliers are being disrupted by COVID again.
- Foxconn has had to shut down its iPhone plant in Shenzhen, China.
- One analyst says that Apple's exposure is 'manageable but significant'.
New insight from Bank of America says that Apple's exposure in China is 'manageable but significant' as new COVID measures force iPhone production in the country to stop.
Bank of America analyst Wamsi Mohan, as reported by Seeking Alpha, stated:
Mohan added that Apple and Foxconn do have the ability to relocate production to other areas "provided that there is not a significantly higher duration of lockdown" with other sites in China picking up the slack. Mohan did warn, however, that a longer shutdown beyond the current one-week measure could have "ripple effects" on Apple's supply chain and impact the availability of products like its best iPhone, the iPhone 13.
As reported Monday, Apple's main partner Foxconn has suspended operations at two campuses, reallocating production to other sites as a result of measures to combat a fresh wave of COVID cases in the region.
China was the first country to see major effects of the pandemic in 2020, causing severe disruption to Apple's operation there, impacting the availability of products at the time, as well as hampering efforts to create its next generation of devices.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9