The Covid continues to play spoilsport in the world of technology. China, which is experiencing an epidemic recovery, is idling its factories, which could well complicate Apple’s future in the short term.
Buying an iPhone for the holidays could be more complicated than expected. Many Apple suppliers are currently operating at a slower pace due to a resumption of the Covid-19 epidemic in China. After clashes in the production chain due to confinement in Shenzhen, it is the turn of the Shanghai factories to be talked about. The city is indeed experiencing one of the worst epidemic episodes since the start of the pandemic. Several tens of thousands of positive cases are declared every day among the inhabitants of the autonomous province. Problem, a good part of the suppliers of Apple is precisely in Shanghai.
On the official list of Apple suppliers, there are 70 factories implemented in the province of Jiangsu, hard hit by the pandemic, and around thirty others around Shanghai. Among them, we find leading players such as the assembler Pegatron and other more discreet partners in charge of the production of screens or printed circuits. Most of these companies also work for Google, Microsoft, Intel or Xiaomi.
Problems throughout the chain
Even if the city of Shanghai tries to reopen its factories while limiting the transmission of the virus, the disruptions of recent months could well affect the whole of 2022 and limit the availability of certain mobiles. Especially since these labor problems come on top of the serious shortage of semiconductors that has plagued the tech world for many months. Add to that significant limitations on the transport of goods and you have a completely seized production chain whose effects could be felt throughout the rest of the year.
“The months of May and June will be crucial. […] If production does not increase in time for goods to be shipped by ocean freight, they may miss the Christmas sales season in Europe and the United States due to port congestion.”, explained an HP official to the Nikkei Asia site. Especially since no sector is spared from the epidemic recovery. From production to shipping through assembly, the whole circuit is now running in slow motion. More than two years after the start of the epidemic, the tech community has not finished suffering from the consequences of Covid-19.