Retail Supply Chain

Major tech companies such as Apple, Dell and Lenovo are likely to face shipment delays should the widespread COVID-related lockdown in Shanghai, China’s largest city, and other eastern regions, persists.

Reuters quotes analysts who say the restrictions are forcing assembly factories to shut down, as China continues to pursue its controversial zero-COVID policy.

For weeks, international media have reported on how China’s aggressive approach to stemming the spread of the virus has completely jammed major highways and ports, and is leaving several factories shuttered, the impacts of which are being felt across global supply chains.

Pegatron Corp, an Apple supplier, this week released a statement to say it is suspending factories in Shanghai and Kunshan, reportedly where the iPhone 13, iPhone SE series and other legacy models are produced.

Analysts also point to the shuttering of Quanta Computer Inc, which produces around three-quarters of Apple’s Macbooks worldwide, as likely to have a more severe impact on the company’s supply chain.

Shanghai is heading into its third week of lockdown, without any indication of when re-opening is to be expected.

Forrest Chen, a research manager at Trendforce told Reuters that if the lockdown is lifted within a few weeks, there is chance for recovery, however if it persists beyond two months, there would be no way to recovery and a shortage for end-users would be unavoidable.

He also says that laptop makers can be expected to suffer, such as Compal Electronics, a Taiwan-based company that makes PCs for Dell Technologies Inc and Lenovo Group ltd from its plants in Kunshan.

Earlier this week, it emerged that 30 Taiwan companies making electronics parts said that COVID-19 restrictions imposed by Government meant they had to suspend production until at least next week.

Compal told Reuters it has yet to halt production in Kunshan, however disruptions abound.

Related

BT from Flickr

British telecoms company BT to axe 55,000 jobs by 2030 amid AI integration

May 19, 2023
by Arnas Lasys

Automation and AI will replace 10,000 of its jobs

Malta and Ethiopia sign collaboration agreements in air services and tourism sectors

May 9, 2023
by Arnas Lasys

This is the first time a Maltese Foreign Minister visited Ethiopia

‘Forget about all the toys’ – Key points from this year’s Berkshire Hathaway shareholder meeting

May 8, 2023
by Robert Fenech

The multinational conglomerate posted increasing profits for the quarter