Apple Inc. (NASDAQ: AAPL) The supply chain has been hit as India grapples with a second wave of coronavirus infections.
What happened: Apple’s supply chain partner Hon Hai Precision Industry Co. Ltd. (OTC: HNHPF), better known as Foxconn, has confirmed that 10 Chinese engineers at its plant in the Indian city of Chennai are infected with COVID-19, Taiwan News reported.
According to the report, the plant was disinfected and continued to operate without stopping completely.
In addition, the New Indian Express reported that another Apple supplier From Wistron Corporation The Karnataka state factory was closed for seven days in May after around 60 cases of coronavirus were reported in the unit. The factory manufactures iPhones.
See also: Apple looks to make iPads in India this year, away from China: report
Why is this important: Apple is in the process of diversifying production to India and Vietnam with the aim of moving away from Chinese manufacturing. Foxconn, Wistron and Pegatron Corporation – all Taiwanese companies – are major players in the manufacture of iPhones and other Apple products in India.
The supply chain of the company led by Tim Cook could be further affected if the COVID-10 situation in India is left unchecked.
India is grappling with a second wave of the COVID-19 pandemic with more than 400,000 new cases per day reported in recent days. Several Indian states have imposed full lockdowns due to the steady rise in coronavirus cases.
Price action: Apple shares closed 0.5% higher on Friday at $ 130.21.
Read more: Apple vendor TSMC plans to meet customer demand for chips by June
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