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China suspends production of 30% of iPhone phones due to Covid 19

China suspends production of 30% of iPhone phones due to Covid 19

Shutdowns in China’s government have threatened to disrupt global supply chains, emphasizing the risks involved with Apple’s reliance on Chinese production, according to CNBC.

Pegatron, which assembles iPhones for Apple, said it had paused manufacturing in Shanghai and Kunshan due to the Chinese government’s severe Coronavirus preventive efforts.

Pegatron collects about 20-30% of all iPhones, according to Nikkei Asia.

According to Bloomberg, the Taiwanese company has been able to continue production thus far because the Chinese government has authorized some manufacturers to operate in a closed-loop system to decrease the risk of infection.

“The shutdown of Pegatron is throwing gasoline on the fire in the supply chain for Apple, which is short of some components in other sectors of its iPhone production ecosystem,” said Wedbush analyst Dan Ives.

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