Apple’s iPhone may face distribution delays as lockdowns in China continue

May 25, 2022 7:10 AM ETApple Inc. (AAPL), PGTRFBy: Jason Capul, SA News Editor4 Comments

iPhone 12 Pro Max

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Apple (NASDAQ:AAPL) has discussed with its suppliers the notion of speeding up the process of the development of its iPhone as COVID-19 lockdowns across China have slowed the output and may perhaps cause delays in distribution.

AAPL is now playing catch up as Pegatron Corp (OTC:PGTRF), which is one of AAPL’s assemblers was forced to suspend its operations at two plants earlier this year, PGTRF at one point stopped its production in Shanghai and Kunshan.

Shanghai, one of the world’s busiest ports and points of business has now entered its seventh week of shutdowns placing pressure on Apple to get the production of its iPhone out without any delays.

In the worst-case scenario, Apple expects the manufacturing schedule and initial production volumes of the new phones to be hurt, the Nikkei business daily reported.

Apple price action: -11.9% over the past month, -22.8% year-to-date, and +10.4% over the past year. Additionally, when looking at a weekly chart of AAPL, investors will notice that the tech giant is hindering on its 100-day moving average.

In related news, Apple is likely to have the newest version of its wireless headphones, the AirPods Pro 2, mass produced in Vietnam in the second-half of the year, a sign the company is continuing to move away from China as its main manufacturing hub.

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