Apple iPhone maker Pegatron suspends production in Shanghai because of Covid outbreak
Summary
Apple iPhone assembler Pegatron said it has has suspended production in Shanghai and Kunshan amid strict Covid-19 prevention measures, according to multiple reports. Shanghai authorities have imposed stringent stay-at-home measures as mainland China faces its worst Covid outbreak since the initial phase of the pandemic in early 2020. The company had been able to continue production until now because the Chinese government allowed some manufacturers to keep operations going via a closed-loop system to reduce the chances of infections, Bloomberg reported. "The Pegatron closures throws gasoline on the raging fire which is the supply chain for Apple and other parts of the iPhone ecosystem," Wedbush analyst Dan Ives told CNBC in an email. "This is not the news the bulls want to hear as this amplifies supply chain issues for iPhones just as Apple was seeing an improvement."
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