Apple Inc. (NASDAQ:AAPL), HON HAI PREC INDS RE (HNHPF) – Apple Provide Chain Hit With COVID-19 Second Wave In India

Apple Inc.’s (NASDAQ: AAPL) provide chain has been hit as India grapples with a second wave of coronavirus infections.

What Occurred: Apple’s provide chain accomplice Hon Hai Precision Business Co. Ltd. (OTC: HNHPF), higher referred to as Foxconn, confirmed that 10 Chinese language engineers at its plant within the Indian metropolis of Chennai had been contaminated with COVID-19, Taiwan Information reported.

In accordance with the report, the manufacturing unit was disinfected and continued to function with out fully shutting down.

As well as, the New Indian Specific reported that one other Apple provider Wistron Company’s manufacturing unit within the state of Karnataka was shut down for seven days in Might after about 60 coronavirus circumstances had been reported on the unit. The manufacturing unit manufactures iPhones.

See Additionally: Apple Seems to be To Make iPads in India This 12 months, In A Shift Away From China: Report

Why It Issues: Apple is within the strategy of diversifying manufacturing to India and Vietnam in a bid to maneuver away from Chinese language manufacturing. Foxconn, Wistron and Pegatron Company – all Taiwanese firms – are main gamers within the manufacture of iPhones and different Apple merchandise in India.

The Tim Cook dinner-led firm’s provide chain could possibly be additional hit if the COVID-10 state of affairs in India isn’t introduced beneath management.

India is scuffling with a second wave of the COVID-19 pandemic with greater than 400,000 each day new circumstances being reported over current days. A number of states in India have imposed full lockdowns as a result of regular rise in coronavirus circumstances.

Value Motion: Apple shares closed 0.5% greater on Friday at $130.21.

Learn Subsequent: Apple Provider TSMC Expects To Catch Up With Clients’ Chip Demand By June

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