Dell and Apple Face Supply Problems Thanks to COVID-19

COVID-19 still has its grip in China and is causing industry-wide issues in the region to this day. As such, COVID lockdowns in Shanghai and Kunshan are halting work or forcing limited work for Dell, Apple, and Tesla’s suppliers.

Last month, a massive tech center in Shanghai had to go into lockdown, forcing employees to stay at home or go through rounds of testing. As a result, facilities producing fundamental computer hardware were required to suspend production for a while.

Fortunately, major manufacturers like Foxconn were able to figure out a solution immediately. The company set up private offices in key locations so employees could live nearby in times of lockdown. These private offices only allowed a limited number of workers.

But this week, the Chinese government has imposed even more severe limitations for major manufacturers to stop their activities. These manufacturers include Pegatron, Quanta, Compal, and more.

Pegatron is responsible for more than 20 to 30% of Apple’s iPhones. The company says it is in touch with providers and clients and wishes to continue working soon. Quanta, the company that produces MacBooks and other laptops for major brands like HP and Dell has been working on significantly lower capacity since the start of the month.

Consequently, we may have to go through another round of price hikes and limited availability for laptops once again.

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