Apple likely to see 'minimal' impact from Shenzhen lockdown, Morgan Stanley says
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Apple (NASDAQ:AAPL) is likely to see a "minimal" impact from Foxconn (OTC:FXCOF) shutting its Shenzhen, China plant amid the city's COVID-19 outbreak, Morgan Stanley said.
In a note to clients, analyst Katy Huberty said the shutdown, which at this point, is expected to last a week, is likely to impact production of iPhones, PCs and notebooks, networking and other components, but Apple (AAPL) is mostly insulated.
"Overall, we estimate that Apple's exposure to Shenzhen is [less than] 20% of production," Huberty wrote in a note to clients. "Breaking this down by product, our Asia supply chain team estimates Apple has 20% of iPhone, minimal iPad/Mac, 20-30% of Apple Watch, and minimal AirPod production in Shenzhen."
Apple (AAPL) shares fell more than 2% to $150.91 on Monday. Shares have fallen more than 10% over the past month.
Huberty conceded that the lockdown does present a "near-term" risk for Apple, but any impact is likely to be limited as the main production sites for Apple's key products are in Zhengzhou and Jiangsu for the iPhone, Chengdu for the Mac and iPad, and Kunshan, Weifang and Vietnam for AirPods.
Additionally, Foxconn (OTC:FXCOF) has already put production from its Shenzhen plant to other sites and it's likely that Foxconn has enough inventory on hand to minimize any near-term impact. 
"While we are confident in Apple assembly partners' ability to work around these short-term Shenzhen lockdowns (as a reminder, there was a partial locked in Shenzhen in Spring 2021 as well), we will have to re-assess the situation if lockdowns persists beyond March 20th and-or spread beyond Shenzhen," Huberty explained.
Last week, Wedbush Securities said that Apple (AAPL) was among the top tech stocks to buy amid the current sell-off.