Apple iPhone maker halts production amid China's Covid crackdown
Ming Yeung/Getty Images News


China's recent efforts to crack down on rising Covid-19 cases has caused one of Apple's (NASDAQ:AAPL) iPhone makers to suspend operations at two plants in the country.
Taiwan's Pegatron said it has temporarily turned the lights off at its factories that build iPhones in Shanghai and Kunshan, China, as the Beijing government continues to impose lockdowns in an effort to stem an increase in the region's Covid case numbers. According to a report from Reuters, Pegatron said re-opening the plants would be dependent upon getting clearance from the Beijing government.

As Apple (AAPL) builds nearly all of its iPhones in China, any slowdown in production there has the potential to negatively impact shipment of the devices that are Apple's biggest revenue source. Last month, Apple (AAPL) contractor Foxconn had to temporarily halt the assembly lines at some of its China factories due to government-imposed Covid lockdowns.
On Monday, reports said Apple (AAPL) has begun building some of its iPhone 13 phones in India as part of an effort to be less dependent on manufacturing facilities in China.
Citi analyst Jim Suva said Tuesday that with Apple's (AAPL) massive cash reserves, the company could possibly boost its stock buyback plan by as much as $90 billion, and raise its dividend payment between 5% and 10% when it reports its fiscal second-quarter results on April 28.