Apple iPhone Maker Pegatron Has Suspended its Production in China

With the Covid outbreak in China, iPhone maker Pegatron has suspended its production in the cities of Shanghai and Kunshan amid strict Covid-19 prevention measures.

China is facing its worst outbreak of the virus since the initial phase of the pandemic in early 2020.

The iPhone assembler’s suspension follows that of Foxconn, another major assembler of iPhones, in March. That company has since “basically” resumed normal operations, according to Reuters.

Shanghai authorities have imposed stringent stay-at-home measures. The government lockdowns began in late March and have threatened to disrupt global supply chains.

Pegatron assembles about 20% to 30% of all Apple iPhones, Nikkei Asia reported.

According to a Bloomberg report, the Taiwanese company had been able to continue production until now because the Chinese government allowed some manufacturers to keep operations going via a closed-loop system to reduce the chances of infections.

“The Pegatron closures throws gasoline on the raging fire which is the supply chain for Apple and other parts of the iPhone ecosystem,” Wedbush analyst Dan Ives told CNBC.

“This is not the news the bulls want to hear as this amplifies supply chain issues for iPhones just as Apple was seeing an improvement.”

Apple recently announced its slate of new products, including a budget iPhone.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.