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iPhone supplier Pegatron issues production warning over COVID lockdowns

Apple assembly partner Pegatron has advised production at a factory in Shanghai has been impacted by the COVID-19 lockdown, a warning that could harm the manufacturing of iPhones and other products.

Lockdowns have caused problems in China for manufacturers, with many assembly partners of Apple fighting to keep operations running as smoothly as possible despite lockdowns in Shanghai and other areas. One supplier, Pegatron, has confirmed it is struggling to deal with the situation.

Pegatron said on Thursday that the production of communications devices and consumer electronics for the quarter will be lower, due to the lockdowns. SCMP reports Pegatron didn't say how much the production levels would drop by.

The announcement arrives a month after Pegatron suspended operations at its Shanghai and Kunshan facilities, effectively cutting production at its only two manufacturing bases in China.

Pegatron assembles between 20% to 30% of all iPhone models, but it is unclear if the latest statement means Apple-related production will be hit or if it will impact Pegatron's other clients more.

Apple has already braced itself for impact from COVID-related disruptions. In its April financial results call, Apple's chief financial officer Luca Maestri said year-on-year revenue in the June quarter could be down $4 billion to $8 billion due to lockdowns and supply constraints.