Some Apple suppliers have halted operations amid China's energy crisis

Some of Apple's suppliers are currently winding down production amid China's energy crisis, which has led to higher prices and government-imposed restrictions on consumption. This comes just days after Apple launched its best-ever iPhone, and the company needs the supply chain to run as smoothly as possible.

Who Stopped

According to a new Nikkei report, one of Apple's suppliers, Eson Precision Engineering, has already completely stopped production and will not resume operations until the end of the week. Another supplier, Unimicron Technology, has halted production in two cities by the end of the month. The company plans to increase capacity at other plants to try to make up for the drop in production.

But Pegatron, a hugely important iPhone assembler, says it hasn't been affected by the recent changes. (Fingers crossed that not everyone here has already gotten the new iPhone 13 to replace the hopelessly outdated iPhone 12). The problem is due to rising gas and coal prices, while the government is also seeking to reduce the amount of energy consumed, according to the report.

What's the outlook

It's not yet clear whether this will have a direct impact on Apple's production plans. The company recently launched a new iPhone 13 lineup and also unveiled new iPad and iPad mini tablets. In addition, the Apple Watch Series 7 will be released in the next few weeks.

Source: nikkei

Illustration: dhahi alsaeedi