Apple iPhone assembler Pegatron has suspended production in Shanghai and Kunshan amid a draconian crackdown that the Chinese Communist Party claims is due to COVID (which we highly doubt; see our Take below).
Apple iPhone assembler Pegatron said it has suspended production in Shanghai and the nearby city of Kunshan amid strict Covid-19 prevention measures, according to multiple reports.
Shanghai authorities have imposed stringent stay-at-home measures… Those government lockdowns, which began in late March, have threatened to disrupt global supply chains. And it shows the risks associated with Apple’s reliance on manufacturing in China.
Pegatron assembles about 20% to 30% of all iPhones, Nikkei Asia 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.”
Almost 50% of iPhones are produced at a factory in Henan province, according to a Bank of America research note. But Pegatron’s only active iPhone manufacturing facilities are in Shanghai and Kunshan, according to Nikkei.
MacDailyNews Take: The CCP is currently committing atrocities in Shanghai – starving and imprisoning people; mass killing of people’s pets – and Apple’s CEO, who is often rather vociferous on Twitter about all sorts of issues, whether he understands them fully or not at all, has yet to utter a single peep.
Nor, we bet, will Cook ever utter a peep over these actual atrocities.
This comes after years of the CCP committing genocide, crimes against humanity, and torture of Uyghurs and members of other minorities in the Xinjiang region.
Is this CCP crackdown in Shanghai really about COVID or it is actually about something else, such as, oh, perhaps the imposition of control and the message it sends to Chinese citizens?
This current Pegatron issue (minor, but indicative) is what happens when you shortsightedly paint yourself and the company you purport to lead into a corner then fail to realize and correct your mistake in a timely manner.
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