Apple has 'manageable but significant' exposure to China COVID surge
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Apple (NASDAQ:AAPL) shares have been hit as investors move away from the tech sector, but it has a new worry, as rising COVID-19 cases in key manufacturing areas in China could impact production.
Bank of America analyst Wamsi Mohan, who has a buy rating and a $215 price target, noted that Apple has a "manageable but significant" exposure to Shenzhen, where Foxconn (OTCPK:HNHAF) has a manufacturing plant, calling it "a hub for a material part of the iPhone supply chain." 
"Apple/Foxconn have the ability to relocate production to other areas in the short term provided that there is not a significantly higher duration of lockdown," Mohan wrote in a note to clients.
Mohan also pointed out that other sites in China could pick up some of the shortfall, as nearly 50% of iPhone production occurs in Zhengzhou in China's Henan province. Apple (AAPL) is also starting to ramp up production in India, albeit "at a much smaller scale," the analyst noted.
Apple (AAPL) shares fell slightly less than 1% to $150.46 in premarket trading.
The shutdown may not impact Apple (AAPL) much as production normally slows in the first quarter. 
However, if the shutdown were for an increased period of time -- it's currently set for one week -- it could cause "ripple effects" at other components that could create a shortfall in production, Mohan added.
Last week, Wedbush Securities said that Apple (AAPL) was among the top tech stocks to buy amid the current sell-off.