spot_img

Shenzhen Lockdown Won’t Significantly Affect iPhone Production

Share post:

J.P. Morgan analysts have assured that the decision to close Foxconn’s plant in Shenzhen will not have a big impact on iPhone Production.

“We believe the impact from the Shenzhen lockdown on iPhone EMS build should be limited (~10% maximum of global iPhone production), due to low season and small production exposure to Shenzhen,” analyst Gokul Hariharan wrote in a note.

The analysts further stated that the assembly plant in Shenzhen only accounts for less than 20% of the total iPhone Production capacity for Hon Hai.

The vast majority of plants that account for major production are located in Zhengzhou, an industrial and transport hub.

Hon Hai Precision Industry, known as Foxconn is a key Apple supplier. The company was forced to shut down its plants in Shenzhen temporarily in a bid to contain the COVID outbreak.

Analysts believe Shenzhen’s lockdown won’t have a big impact on semiconductor productions. They however warned that lockdowns in the Shanghai region could be more disruptive.

For more information, read the original story in Reuters.

spot_img

SUBSCRIBE NOW

Related articles

Nearly 70% of IT leaders to increase outsourcing

According to research performed by software development business JetRockets, almost 70% of IT executives are increasing their demand...

Employers increasing standards for employee performance reviews to cut costs

Many large firms, like Google, Salesforce, and Goldman Sachs, are instituting tighter employee performance review criteria. Their goal...

Broadcom-VMware merger may be derailed by British antitrust investigation 

Timothy LaComb, a San Diego-based attorney who specializes in antitrust, unfair competition, and complex business cases, believes that...

U.K. launches in-depth investigation into Broadcom’s $61bn VMware acquisition

The U.K. Competition and Markets Authority (CMA) has announced an in-depth investigation into Broadcom's proposed $61bn acquisition of...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways