iPhone vendor Pegatron issues production warning over COVID lockdowns

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Apple’s assembly partner Pegatron said production at a factory in Shanghai had been affected by the COVID-19 lockdown, a warning that could hurt manufacturing of iPhones and other products.

The lockdowns have caused problems for manufacturers in China, with many of Apple’s assembly partners battling to keep operations running as smoothly as possible despite lockdowns in Shanghai and other regions. One supplier, Pegatron, confirmed it was struggling to cope with the situation.

Pegatron said Thursday that production of communications devices and consumer electronics for the quarter would be lower due to shutdowns. SCMP reports that Pegatron did not specify how much production levels would drop.

The announcement comes a month after Pegatron suspended operations at its Shanghai and Kunshan facilities, reducing production at its only two manufacturing bases in China.

Pegatron assembles between 20% and 30% of all iPhone models, but it’s unclear if the latest statement means Apple-related production will be affected or if it will have more of an impact on other Pegatron customers.

Apple has already prepared for the impact of COVID-related disruptions. In his April earnings call, Apple Chief Financial Officer Luca Maestri said year-over-year revenue in the June quarter could decline by $4 billion to $8 billion due to bottlenecks and supply constraints.

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