iPhone production in China has stopped

The production of Apple iPhone smartphones in China has stopped due to the outbreak of coronavirus. It is reported by Bloomberg.

Agency journalists learned that one of Apple’s major partners in China, Pegatron, stopped the production of equipment at factories in Shanghai and Kunshan. This measure is caused by the fight against the outbreak of COVID-19 in the region and the disruption of the supply chain of components.

Pegatron said in a statement that the resumption of production will be possible after appropriate notification from the authorities. The company will continue to assess the financial implications. Experts noted that, until recently, Pegatron was able to continue to operate under the permission of local authorities. However, officials later said that the Pegatron dormitory in Kunshan found three cases of coronavirus infection in the past four days.

Bloomberg authors specified that Pegatron shared orders for iPhone production in the region with Foxconn and Luxshare Precision Industry. In March, Foxconn partially suspended operations due to COVID-19 restrictions.

The material says that in addition to coronavirus restrictions, the production of equipment in China is hindered by a disruption in the supply of components. Some manufacturers, including Pegatron, only have a few weeks of stock left, sources estimate.

At the end of March, sources told the Nikkei that Apple had notified suppliers that it was cutting production orders for smartphones and headphones. The Ukrainian crisis and impending inflation were named as the main reasons for such a decision.