Apple Inc.’s AAPL 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. HNHPF, better known as Foxconn, confirmed that 10 Chinese engineers at its plant in the Indian city of Chennai were infected with COVID-19, Taiwan News reported.
According to the report, the factory was disinfected and continued to operate without completely shutting down.
In addition, the New Indian Express reported that another Apple supplier Wistron Corporation’s factory in the state of Karnataka was shut down for seven days in May after about 60 coronavirus cases were reported at the unit. The factory manufactures iPhones.
Why It Matters: Apple is in the process of diversifying production to India and Vietnam in a bid to move 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.
See also: How To Buy Apple Stock
The Tim Cook-led company’s supply chain could be further hit if the COVID-10 situation in India is not brought under control.
India is struggling with a second wave of the COVID-19 pandemic with more than 400,000 daily new cases being reported over recent days. Several states in India have imposed complete lockdowns due to the steady rise in coronavirus cases.
Price Action: Apple shares closed 0.5% higher on Friday at $130.21.
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