Shipments of some Apple products, as well as Dell and Lenovo laptops are likely to face delays if China's COVID-19 lockdowns persist, analysts said, as curbs force assemblers to shut down and closed-loop arrangements get harder to maintain, Reuters reported. China's race to stop the spread of COVID-19 has jammed highways and ports, stranded workers and left countless factories awaiting government approval to reopen — disruptions that are rippling through global supply chains. Apple Inc. supplier Pegatron Corp. said this week that it would suspend its plants in Shanghai and Kunshan, where according to supply chain experts it produces the iPhone 13, the iPhone SE series, and other legacy models. Quanta Computer Inc., which produces some three-quarters of Apple's Macbooks globally, also shut operations, which could impact delivers more severely, analysts said. The final impact on Apple's supply chain is uncertain and depends on factors including how long lockdowns persist. The company may also consider re-routing production out of Shanghai and Kunshan to factories elsewhere, such as Shenzhen, which currently is not under lockdown, analysts said. The chief executives of Huawei Technologies Co Ltd and Xpeng Inc. have flagged huge economic costs if factories in Shanghai cannot resume production soon. Shanghai is approaching its third week of lockdown and has shown no sign of a wide re-opening. Laptop makers may also suffer, including Compal Electronics Inc., a Taiwan-based company that makes PCs for Dell Technologies Inc. and Lenovo Group Ltd from its plants in Kunshan.
