Shenzhen shutdown hitting Foxconn & other Apple suppliers hard

Posted:
in General Discussion edited March 2022
Apple's Mac Studio and other products may arrive with consumers later than expected, with a COVID lockdown in Shenzhen, China impacting manufacturers and shipments.




Following its introduction on March 8, preorders for the Mac Studio started to slip from a delay of a few weeks into orders arriving in up to 12 weeks. However, a new COVID-19 lockdown may cause those orders to be further delayed.

A spike in infections in Hong Kong has prompted the Chinese government to place Shenzhen into lockdown, reports the Associated Press.. Under the order, everyone in the city, which has a population of 17.5 million people, will face three rounds of testing, as part of a "zero tolerance" strategy against the virus.

With the exception of companies supplying food, fuel, and essential goods or services, all businesses were ordered to close or implement work-from-home policies. It is expected that the lockdown will persist until March 20 at the earliest.

The decision was made after Hong Kong reported more than 32,000 new infections on Sunday, while the neighboring Shenzhen reported 60 new cases.

The measure is a problem for the global supply chain, as Shenzhen is a business and technology center that plays host to manufacturers working for major companies. Apple is one of them, with assembly partner Foxconn one of the largest with facilities in the area.

In statements released on Monday seen by Nikkei Asia, Foxconn's Longhua and Guanlan factories suspended production until further notice, while also temporarily shifting production to other facilities elsewhere. Subsidiary General Interface Solutions (GIS), a producer of touch panels, also confirmed it was halting production.

Unimicron, a major circuit board producer and Apple supplier, is also stopping production. However, the company said its important ajinomoto build-film (ABF) substrate isn't affected as it is produced elsewhere, so the global ABF substrate shortages won't be impacted.

In an email to AppleInsider, a reader writes that their Mac Studio order had shipped on Saturday, with an origin scan in Shenzhen. After noticing reports about the lockdown, they checked and found the UPS app was saying the order was preparing to ship, whereas a status on Apple Card said it wasn't, adding to the confusion.

Apple's partners have had to deal with COVID-19 outbreaks hurting production, with a report from January revealing Foxconn was carrying out frequent testing and mandating strict travel restrictions to minimize risk.

Update March 14 6:15am ET: Added confirmations of factory shutdowns.

Read on AppleInsider
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Comments

  • Reply 1 of 35
    robin huberrobin huber Posts: 3,971member
    Whatever happened to the Pro being built in Texas, was it? 
  • Reply 2 of 35
    JWSCJWSC Posts: 1,203member

    With the exception of companies supplying food, fuel, and essential goods or services, all businesses were ordered to close or implement work-from-home policies. It is expected that the lockdown will persist until March 20 at the earliest.
    Hey, my Mac Studio is an essential good. So…
    glnfpslice
  • Reply 4 of 35
  • Reply 5 of 35
    waveparticlewaveparticle Posts: 1,497member
    Whatever happened to the Pro being built in Texas, was it? 
    I think it is still being built in Texas. But very little people are buying it. 
  • Reply 6 of 35
    Whatever happened to the Pro being built in Texas, was it? 
    I remember they had some issue getting special screws made in the US for the Texas plant that were apparently plentiful in China.
  • Reply 7 of 35
    Just read that Foxconn has suspended production in Shenzhen so no production of iPhones, Mac Studio.
  • Reply 8 of 35
    All factories and offices are closed to contain abs chance of the latest covid spread.
    this closure is currently only planned until this Saturday. Midnight. So back to work on the 20th.
    every day every person is to be tested. 

    More important things in life that a poxy computer. I would suspect it means a minor climb in stock. 
    Failing to even know that shipping from Shenzhen via HK has added many days delay already. 

  • Reply 9 of 35
    blastdoorblastdoor Posts: 3,346member
    This Covid disruption is much smaller than the disruption that will occur if China makes a bad choice regarding this topic: https://www.cnn.com/2022/03/14/china/china-us-meeting-rome-ukraine-intl-hnk/index.html

    apple should be in red alert panic mode about China right now

    edit: I just dumped AAPL and used the proceeds to buy LMT and RTX. 
    edited March 2022 dewmetmay
  • Reply 10 of 35
    lkrupplkrupp Posts: 10,557member
    Whatever happened to the Pro being built in Texas, was it? 
    I think it is still being built in Texas. But very little people are buying it. 
    Got any links to support your assertion? I thought not.
  • Reply 11 of 35
    blastdoorblastdoor Posts: 3,346member
    Whatever happened to the Pro being built in Texas, was it? 
    I think it is still being built in Texas. But very little people are buying it. 
    Are we talking Oompa Loompas or Munchkins? 
  • Reply 12 of 35
    lkrupplkrupp Posts: 10,557member
    Is this Covid or is it China colluding with Russia to make things hard for American companies?
  • Reply 13 of 35
    waveparticlewaveparticle Posts: 1,497member
    lkrupp said:
    Whatever happened to the Pro being built in Texas, was it? 
    I think it is still being built in Texas. But very little people are buying it. 
    Got any links to support your assertion? I thought not.
    It is not too difficult using term logic. First, Mac Pro is still selling on Apple.com. Second, the starting price is $5,999. You only need to deduce the implication. 
  • Reply 14 of 35
    robin huberrobin huber Posts: 3,971member
    lkrupp said:
    Whatever happened to the Pro being built in Texas, was it? 
    I think it is still being built in Texas. But very little people are buying it. 
    Got any links to support your assertion? I thought not.
    It is not too difficult using term logic. First, Mac Pro is still selling on Apple.com. Second, the starting price is $5,999. You only need to deduce the implication. 
    Yeah, but it’s much more fun being snarky. 
  • Reply 15 of 35
    StrangeDaysStrangeDays Posts: 12,919member
    lkrupp said:
    Is this Covid or is it China colluding with Russia to make things hard for American companies?
    Read the source articles. China is not shutting down their own cities and ports and truckers just to make things difficult for the people they depend on to sell output to. That’s a conspiracy theory.
    jroytmaymuthuk_vanalingambulk001pslice
  • Reply 16 of 35
    blastdoorblastdoor Posts: 3,346member
    lkrupp said:
    Is this Covid or is it China colluding with Russia to make things hard for American companies?
    They are conspiring with Russia, but they have much bigger goals for that conspiracy.

    I’m sure this is just Covid.
  • Reply 17 of 35
    waveparticlewaveparticle Posts: 1,497member
    China's epidemic prevention is not effective against Omicron virus. Most confirmed cases are asymptotic. China uses testing to find out affected people. This is not effective against asymptotic transmission. The public safety department seems helpless. Coupled with the zero tolerance policy China is spiraling into nationwide shutdown. 

    From limited reporting on Omicron cases, it seems that most transmissions are through the mouth. If so, the virus is transmitted through eating and drinking together with other people. I think one effective way of prevention for this virus is the public safety department should widely advocate people eating and drinking carefully with other people. 
  • Reply 18 of 35
    waveparticlewaveparticle Posts: 1,497member
    blastdoor said:
    lkrupp said:
    Is this Covid or is it China colluding with Russia to make things hard for American companies?
    They are conspiring with Russia, but they have much bigger goals for that conspiracy.

    I’m sure this is just Covid.
    India is also continuing importing oil from Russia. Is this a conspiracy from MSM? 
  • Reply 19 of 35
    blastdoorblastdoor Posts: 3,346member
    China's epidemic prevention is not effective against Omicron virus.   
    Indeed. 'zero tolerance' was a pretty effective policy early in the pandemic, and China benefited from the ability to implement that policy well. 

    Now a different policy response is needed, but it turns out the CCP is a one trick pony -- 'zero tolerance' is their answer to everything, but it's rarely the right answer to anything. 
    tmay
  • Reply 20 of 35
    blastdoorblastdoor Posts: 3,346member
    blastdoor said:
    lkrupp said:
    Is this Covid or is it China colluding with Russia to make things hard for American companies?
    They are conspiring with Russia, but they have much bigger goals for that conspiracy.

    I’m sure this is just Covid.
    India is also continuing importing oil from Russia. Is this a conspiracy from MSM? 
    So are you trying to change the subject because you agree that Russia and China are conspiring and just don't want to talk about it? 

    Xi literally said, and went out of his way to say, that his friendship with Putin is "limitless." He has previously said that he and Putin have very similar personalities. Chinese propaganda has also been mimicking Russian misinformation about the war in Ukraine. And now Russia has asked China for military assistance. This isn't conspiracy theory, it's conspiracy fact. 
    tmay
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