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Major iPhone supplier cuts production because of COVID lockdowns

Apple Iphone Ipad Availability Beijing Iphone 13 Pro Close Up
Apple Iphone Ipad Availability Beijing Iphone 13 Pro Close Up (Image credit: Apple)

What you need to know

  • Apple's supply chain continues to suffer because of COVID restrictions.
  • iPhone maker Pegatron is cutting production in Shanghai.
  • Operations at its Shanghai plant are being constrained by government lockdown measures.

Apple's supply chain has taken another hit because of COVID lockdowns, as iPhone maker Pegatron announces that it is cutting iPhone production because of restrictions.

As reported by SCMP:

Apple's tightly managed supply chain network has taken another hit in mainland China, as Taiwanese contract manufacturer Pegatron Corp cut production at its factory in Shanghai, where a strict Covid-19 lockdown remains in force.

According to the report, Pegatron plans to decrease output this quarter "because operations at its major assembly plant in Shanghai are constrained by the citywide lockdown measures." It didn't offer further information on specific volumes.

One analyst told the outlet that iPhone models including Apple's new iPhone SE, the best iPhone for those on a budget, could see a drop in production as a result.

Pegatron has already been forced to suspend production one last month, and Shanghai has been under strict COVID-19 lockdown measures for seven weeks.

Apple continues to endure disruption across its supply chain, with studies recently showing that more than half of Apple's 190+ suppliers have operations on China's mainland. Disturbing video footage released earlier in May showed plant workers fleeing a MacBook factory in Shanghai in protest against COVID-19 lockdown measures, with employees reportedly worried about increasing strictness of measures and positive tests on the campus.

Stephen Warwick
Stephen Warwick

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.