Due to covid restrictions in Shanghai, three major factories (Pegatron, Quanta and Compal) that assemble devices for Apple have been halted. Orders were diverted to Foxconn production lines.
But this option may not work. The fact is that the Chinese city of Zhengzhou recently imposed a local quarantine. The Chinese were sent to self-isolation, forbidding them to leave their homes. It is in the economic zone of the Zhengzhou airport, where the largest Foxconn plant for the assembly of iPhones is located. It is highly likely that it will suspend production of Apple smartphones. Earlier, Foxconn had to stop conveyors at its own plant in Shenzhen due to quarantine restrictions.
Experts say it’s important for Apple to limit everything to a 2-week quarantine. Suspension for a longer period threatens failure to meet the production plan and disruption of the sales plan. The worst-case scenario is a 2-month quarantine and the inability to redirect orders to Foxconn. In this case we are talking about the production of about 6-10 million iPhones.
Foxconn recently began producing the latest generation of iPhones for Apple at its Chennai, India plant. At the same time, the production of the Pro-version has not yet started in the country.
According to iDropNews, Apple has begun planning a new pricing policy related to the fall release of the iPhone 14 line.