'Apple iPhone Assembly' Pegatron Halts Operations at Shanghai Factory Due to COVID-19 Impact

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Taiwanese company Pegatron, which assembles Apple's iPhones, has suspended operations at its factories in Shanghai and Kunshan, China, due to the impact of COVID-19, CNBC reported on the 12th (local time).

In China, lockdown orders have been imposed in some cities, including Shanghai, due to a surge in COVID-19 cases. Shanghai, home to 25 million people, has been under a travel ban since the 28th of last month, and from the 11th, movement restrictions have been partially lifted in areas with no reported COVID-19 cases.

Under the Chinese authorities' strict lockdown measures, Pegatron's factory operations have been halted. Earlier, U.S. electric vehicle maker Tesla and Chinese EV company Nio also stopped their factory operations, and German auto parts manufacturer Bosch suspended operations at two manufacturing plants in China.

It is reported that Pegatron assembles about 20-30% of iPhones. Foxconn, which assembles the largest portion of iPhones, temporarily halted operations at its Shenzhen factory last month due to COVID-19 but resumed production, stating at the time that it would adjust production lines to other locations to minimize impact. However, since Pegatron's iPhone manufacturing facilities are only in Shanghai and Kunshan, it is difficult to know how they will respond.

Despite this news, Apple's stock closed at 167.66, up 1.15% from the previous trading day. Wedbush analyst Dan Ives said, "The closure of Pegatron is like pouring fuel on the fire for Apple's supply chain and iPhone ecosystem," adding, "The growing supply chain issues for the iPhone are not the kind of news the stock market wants."

This content was produced with the assistance of AI translation services.