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Apple Urges Chinese Suppliers to Speed Up iPhone Development: Report

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Apple has instructed its suppliers to accelerate iPhone development after China's stringent COVID-19 lockdowns have slowed the growth of at the very least one of the phones that will be released,
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Apple Urges Chinese Suppliers to Speed Up iPhone Development as COVID-19 Lockdown Hampers Schedule: Report

 Nikkei reported on Wednesday and citing several sources who are aware of the issue.

The lockdowns triggered by China’s zero-COVID policy prompted iPhone assembly company Pegatron to shut down the operations of Pegatron’s Shanghai and Kunshan factories in June.

Financial center Shanghai remains in limbo due to the city’s lockdown, which is currently in its seventh week. In the meantime, Beijing has increased the quarantine measures.

In the last month, Apple warned of more problems, as COVID-19 lockdowns have slowed production and increased demand in China and the war in Ukraine, making it worse for the iPhone maker’s troubles.

In the worst-case scenario, Apple expects the manufacturing schedule and the initial production volume from the brand new handsets to suffer, according to the Nikkei business newspaper said.

Apple and its partners Foxconn and Pegatron did not respond immediately to requests for comments from Reuters.

In the last month, Apple supply chain Foxconn warned that the revenue of its current quarter for its electronics division, including smartphones, could fall due to the growth rate slowed due to the rising cost of living and cooling demand in locked-down China increasing supply chain problems.

The Taiwanese company, which is the world’s biggest manufacturer of contract electronics, is battling the issue of a shortage of chips, just like other manufacturers around the world, which has affected smartphone production, particularly for its biggest client Apple.

The company has stated that the COVID-19 control system in China has had a negligible effect on its production because the company kept workers within a “closed-loop” system. The demand for its products in China has declined because people are locked up. The slowdown was recently worsened by a slump in major markets due to rising inflation and the conflict in Ukraine.

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