Foxconn, one of Apple’s major suppliers, has halted operations in Shenzhen, China, due to a lockdown imposed by the local government following a new COVID-19 outbreak. There, the Taiwanese company has factories responsible for assembling iPhones and other Apple products.
As reported by Bloomberg, the lockdown has led Foxconn to suspend operations at two of its campuses in Shenzhen. To reduce the impact of the lockdown, the company has relocated production to other sites that are still operating regularly. The lockdown is expected to last until March 20.
China placed the 17.5 million residents of Shenzhen into lockdown for at least a week on Sunday, seeking to halt a growing Covid-19 outbreak. […] All bus and subway systems have been shut, and businesses, except those providing essential services, have been closed.
The Chinese government opted for a new lockdown after more than 3,000 cases of COVID-19 were reported in Shenzhen on Sunday, March 13. Hon Hai (the group behind Foxconn) shares were down 1% on Monday morning in Taipei. While this certainly hurts Foxconn, the lockdown will also have an impact on Apple and other tech companies that rely on these facilities to build their products.
The report highlights that the demand for products at this time of year is not as high since it follows the holiday season peak. Even so, Apple has just announced new products, including the 3rd generation iPhone SE, the iPad Air 5, and Mac Studio – which may have their shipments affected.
Other companies that are based in Shenzhen, such as Huawei, DJI, and Tencent have also been forced to suspend their operations until the lockdown ends.
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