Foxconn is shutting down two manufacturing sites in the Shenzhen tech hub. One of them was dedicated to iPhones. The company is forced to do so by the Chinese government, which has imposed strict confinement on all non-essential activities. A Covid outbreak has been detected in the metropolis and the country is once again applying its “zero Covid” policy.
Consequences for the new iPhone SE?
Even if production has been reassigned elsewhere in China, the impact of this relocation is difficult to assess. It is not yet known if it will have an effect on the launch of the new iPhone SEs unveiled last week. It will also depend on the duration of the confinement, currently planned until March 20. A source quoted by Reuters says that a recovery would be partially possible as long as a strict health bubble would be applied.
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The Taiwanese printed circuit board manufacturer Unmicron Technology Corporation, which notably supplies Intel, is also affected by this confinement. Fortunately, this stop falls during the first quarter, when the demand for global electronics slows down, after the explosion in demand linked to the holiday season.