What you need to know
- New research has revealed that half of Apple's top 200 suppliers have facilities at risk of COVID lockdowns in China.
- The government is taking a zero-tolerance approach to COVID that could shut some factories.
- One supplier warned the disruption "could lead to a supply chain cutoff in the worst-case scenario."
New analysis has found that half of Apple's top 200 suppliers have facilities near Shanghai that could be at risk of disruption due to COVID lockdowns.
As reported by Nikkei Asia:
As the report notes, while some suppliers are on a White List to gradually resume operations, China remains committed to a zero-tolerance policy with regard to COVID. One chairman, AU Optronics' Paul Peng warned that "we think the impact is much more serious than the power outage last year as it involves a wide range of supply chain," further stating that "the disruption is not to a single company or industry, it's a global supply chain incident that could lead to a supply chain cutoff in the worst-case scenario."
Peng warned that it would take at least another quarter for normal production to resume and that suppliers were struggling for even the most basic goods, such as cardboard boxes, as well as truck drivers.
One source also told the outlet that an Apple supplier had halted operations in Suzhou due to logistics issues there and in Shanghai, with its own materials provider also shutting down. A Digitimes report today indicates that plants in Chengdu and Chongqing are also seeing inventory depletion because of the impact on Shanghai and Kunshan.
Reports indicate that Apple is already starting to feel the pinch on the supply of devices like the iPhone and MacBook Pro (2021) too, as the emerging threat of COVID once again rears its head as an operational headache for Apple.
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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