Apple won't easily be able to work around long China COVID lockdowns

Apple may be able to shift iPhone and MacBook production to circumvent China's coronavirus precautions in the short term, but it can't compensate well if the country goes for a two-month lockdown.

Key Apple suppliers including Pegatron have already been ordered by Chinese authorities to halt production. Presently, Pegatron may not be allowed to resume until early May, and overall, the lockdown policies affecting all firms in the region have delayed MacBook Pro manufacture.

According to Reuters, it's possible that Pegatron alone may fall behind productions schedules by 6-10 million iPhones — if the lockdown extends to a total of two months.

Shanghai is already nearing its third week of lockdown. Factory sources have told Reuters that they have been told the steps and procedures for how to re-open, but have not been told any date.

Trendforce research manager Forrest Chen told the publication that delays of a few weeks were surmountable.

"[However," if the lockdown lasts longer than two months, there is already no way to recover," said Chen. "At that point, after lockdown lifts, there would be a shortage for end-users."

Currently, however, suppliers including PCB maker Unimicron Technology Corp say that the lockdown has had only minor impact so far.

Recently, Apple iPad supplier Compal said that its operations had been halted at its Kunshan plant. However, the company now tells Reuters that it is continuing to make laptops in the area.

Apple has not commented, nor have representatives from its major suppliers including Pegatron.

8 Comments

blastdoor 15 Years · 3594 comments

About 2 years ago

Apple — get the majority of your manufacturing out of China as fast as you can. And then never become so dependent on any one country or region again.

Chinese labor is to apple what Russian natural gas is to Germany — a very dangerous dependency.

techrider 12 Years · 102 comments

blastdoor said:

Apple — get the majority of your manufacturing out of China as fast as you can. And then never become so dependent on any one country or region again.
Chinese labor is to apple what Russian natural gas is to Germany — a very dangerous dependency.

Mexico may be a smart partner for corporations to relocate certain manufacturing to, keeping these dependencies inside the continent. The point of no return for China’s GDP to exceed the US’ is approaching.

waveparticle 3 Years · 1497 comments

blastdoor said:

Apple — get the majority of your manufacturing out of China as fast as you can. And then never become so dependent on any one country or region again.
Chinese labor is to apple what Russian natural gas is to Germany — a very dangerous dependency.

Do you a suggestion to Apple which country to go? Apple is not God. Even God cannot satisfy your prayers. Apple picked Foxconn to make iPhones and Pegatron to make Macs. Both are Taiwanese companies.

darkvader 15 Years · 1146 comments

waveparticle said:

blastdoor said:

Apple — get the majority of your manufacturing out of China as fast as you can. And then never become so dependent on any one country or region again.
Chinese labor is to apple what Russian natural gas is to Germany — a very dangerous dependency.

Do you a suggestion to Apple which country to go? Apple is not god. Even god cannot satisfy your prayers. Apple picked Foxconn to make iPhones and Pegatron to make Macs. Both are Taiwanese companies.

god isn't real. And Apple can afford to build their own factories. As far as countries, I'd suggest they start by reopening the Fremont factory in California, add a few more across the US, actually start manufacturing at their Ireland facility, open a factory in Germany, maybe Canada and Mexico, once the war is over and they join the EU Ukraine could be a good location.

The world is full of countries that aren't genocidal dictatorships, so there are plenty of countries to pick from.

darkvader said:

waveparticle said:

blastdoor said:

Apple — get the majority of your manufacturing out of China as fast as you can. And then never become so dependent on any one country or region again.
Chinese labor is to apple what Russian natural gas is to Germany — a very dangerous dependency.

Do you a suggestion to Apple which country to go? Apple is not god. Even god cannot satisfy your prayers. Apple picked Foxconn to make iPhones and Pegatron to make Macs. Both are Taiwanese companies.

god isn't real. And Apple can afford to build their own factories. As far as countries, I'd suggest they start by reopening the Fremont factory in California, add a few more across the US, actually start manufacturing at their Ireland facility, open a factory in Germany, maybe Canada and Mexico, once the war is over and they join the EU Ukraine could be a good location.

The world is full of countries that aren't genocidal dictatorships, so there are plenty of countries to pick from.

What kind of work you do? You have no idea how iPhone is assembled. If assemble a smartphone is so easy why Blackberry is not making Android phones?