Pegatron COVID lockdown may delay iPhone production

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Apple supply partner Pegatron has warned against impending iPhone production due to one of its factories in Shanghai currently in lockdown.

iPhone Production

China’s zero tolerance lockdowns have caused all kinds of delay for manufacturers and suppliers. The companies have tried to have their operations running smooth despite the lockdowns, but Pegatron has confirmed that they’re struggling to cope with the situation.

Pegatron mentioned that consumer electronics and communications device production will be lower for the quarter because of the aforementioned lockdowns, although it hasn’t been implied just how much it would drop by.

The announcement came a month after the company suspended Kunshan and Shanghai operations, which means there were only two facilities running. It’s worth noting that Pegatron is responsible for 20 to 30 percent of all iPhone assembly. It remains to be seen if the lockdown will affect production of other devices as well.

Luca Maestri, Apple CFO said that the company’s June quarter year-on-year revenue might drop due to supply constraints and lockdowns.