China COVID-19 Policies Disrupting Apple Supply Chain

Issue 114

Despite Covid-19 cases dropping around the world since the end of January, unfortunately, some parts of the world are still struggling with rising numbers and extending lockdowns.

Rising cases of Covid-19 throughout Chinese cities Shenzhen and Changchun have called for extended lockdown periods that have resulted in the temporary closure of manufacturing facilities. Most notable among these facilities is Foxconn Technology Group which is a major manufacturer of Apple iPhones.

Foxconn stated that the company's manufacturing facility closures are in response to local government policy as the city has been placed on lockdown for at least a week after the city experienced 86 new cases of Covid-19 on Sunday. The local government has also stated that the city's residents will also have to undergo three rounds of testing.

While 86 new cases may seem like nothing compared to the rest of the world, China has implemented a zero-tolerance policy associated with Covid-19 as the country has experienced numerous lockdowns ordering that factory workers stay home. Foxconn is not the only manufacturer for Apple that will be facing temporary closures as six other iPhone makers will be forced to close in Shenzhen alone.

Source: Wall Street Journal