bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

Ann Cao

Apple’s value chain in China, an emblem of the country’s global role as a source of labour and assembly, has been hit hard by strict lockdowns in Shanghai and neighbouring provinces, raising the risk that the US tech giant may accelerate a shift of its operations away from China, say analysts.
While it is hard to put an exact figure on the losses resulting from the disruption to transport and production along Apple’s extensive value chain in China, chief financial officer Luca Maestri told a conference call on Thursday that Covid-19-related lockdowns and a chip shortage would reduce the company’s revenue by up to US$8 billion in the June quarter.
Maestri said this was “substantially larger than” the impact in the previous quarter and also warned about the likely knock-on effect of reduced consumer demand in China due to lockdowns.
Apple’s close links with China have, historically, been underpinned by two main factors. First, the country is an ideal assembly centre for the California-based tech giant, thanks to its advanced infrastructure, skilled labour force and efficient logistics services. Components from Taiwan, South Korea and elsewhere are assembled into iPhones and iPads on factory floors in China for the whole world to buy.
Foxconn halts production at two plants in eastern city of Kunshan over Covid-19 cases
Secondly, China itself is the second-largest market for Apple, thanks to the country’s growing middle class, which has become increasingly affluent over the past decade, say analysts.
But this positive alignment of factors is now under threat.
China’s strict lockdowns in Shanghai and eastern Jiangsu province – key financial and manufacturing centres – since the end of March to tame the highly-infectious Omicron variant of Covid-19, have raised doubts about the country’s position as an integral part of global supply chains for Apple.
The situation has become more acute for China given that other countries – particularly Vietnam and India, which are returning to normal after Covid-19-related disruptions – are eyeing a bigger share of Apple’s value chain.

According to calculations by the South China Morning Post, more than half of Apple’s 192 suppliers with an internal manufacturing site for the company, including Foxconn Technology Group, Pegatron Corp, Quanta Computer, Wistron Corp and Compal Electronics, have production facilities in lockdown-hit Shanghai and Jiangsu.
Moreover, two Foxconn factories in Shenzhen had to suspend operations for days in March amid a local brief lockdown, while the largest iPhone assembly compound in Zhengzhou has been short of labour as Covid-19 restrictions have made it hard for migrant workers from other areas to reach the Foxconn factory there.
MacBook supplies at risk after Quanta Computer halts production in Shanghai
For lesser-known suppliers or subcontractors in Apple’s value chain, it has been even harder to maintain normal levels of operation. Foxconn, formally known as Hon Hai Precision Industry, had to suspend operations at two plants in Kunshan, a city in Jiangsu province, last week after one worker under its "closed-loop" system was found to be infected with Covid-19.
Ming-Chi Kuo, a TF Securities analyst who follows Apple, said lockdowns in the Yangtze River Delta region would roughly lead to a 30 to 40 per cent drop in shipments this quarter for Apple, although the shortfall could be narrowed to 15 to 25 per cent if other suppliers step in.
Delivery times for Apple's MacBook Pros have been delayed by up to five weeks as the sole assembler, Quanta, has been forced to suspend operations due to the Shanghai lockdown, said Kuo.
Apple had already started to consider reducing its reliance on China, but the recent lockdowns have accelerated the process, according to Kuo. Relocating some production facilities from China is “no longer a proposal but an action plan”, Kuo said.
Apple did not immediately respond to a request for comment on its plans for China in the face of lockdown-related disruptions.
Apple supply chain hit by lockdowns in Shanghai, Kunshan
The Covid-19 lockdowns come at a time when geopolitical pressure is rising for an economic decoupling between China and the United States.
Former US President Donald Trump pushed for the reshoring of US manufacturing and the Biden administration has been working with regional allies to reduce supply chain reliance on China.

Apple, under chief executive Tim Cook, has maintained a smooth relationship with Beijing despite some sporadic consumer boycotts of Apple products in China. Cook heads up the advisory committee for the economic management school at Tsinghua University, which gives him access to China’s national leaders.
Tech media outlet The Information reported at the end of last year that Cook signed an agreement with Chinese officials, estimated to be worth about US$275 billion, to help China develop its technological prowess and to head off state action which would have hobbled Apple’s devices and services in the country.
In Thursday’s conference call, Cook said Apple was likely to move more production capacity back to the US considering the ongoing challenges. “Our supply chain is truly global … we do a lot in the US and we’ll probably be doing even more here as more chips are produced here,” he said, without giving more details.
Other options for Apple could include India, where land and labour are much cheaper than in the US. With roads and major ports clogged in China because of lockdowns, iPhone production in India surged by 50 per cent year on year in the first quarter of 2022. This was aided by a decision to assemble more iPhone 13 models at a Foxconn factory near Chennai, according to Indian media reports.
Kunshan orders daily tests as Covid-19 shows up in Apple suppliers’ hub
Still, China remains critically important for Apple as a consumer market.
“China growth remains the fuel in the engine [for Apple],” Dan Ives and John Katsingris, analysts at New York-based Wedbush, wrote in a recent research report. But they added that supply chain issues have already cut the sale of around 15 million units of iPhones over the past few quarters.
Meanwhile, there is little sign that China is about to give up on its “dynamic zero” Covid-19 policy. For those industrial enterprises allowed to resume production, strict quarantine rules remain in place, which could translate into additional costs, reduced efficiency and fresh uncertainties down the line.
“The best case [for full resumption] is June,” TF Securities' Kuo said.


Lockdowns and supply chain disruption to accelerate Apple’s move away from China, with India a likely beneficiary, analysts say

Apple iPhone 13 Pro advert inside Shanghai store. Photo: Handout  

Apple’s iPhone 13 smartphones on display at one of the company's stores in China. Photo: Bloomberg

Apple CEO Tim Cook has maintained smooth relations with Beijing. Photo: EPA-EFE

Two of the four campuses of Foxconn Technology Group in Kunshan, a city in eastern Jiangsu province, went into lockdown on April 20 after the Apple supplier reported confirmed Covid-19 cases. Photo: Ann Cao

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Covid-19-related lockdowns and chip shortages are set to reduce Apple revenue by up to US$8 billion in the June quarter
Vietnam and India, which are returning to normal after coronavirus disruptions, are eyeing a bigger share of Apple’s value chain



Countries such as Vietnam and India, which are returning to normal after Covid disruption, are eyeing a bigger share of Apple’s value chain.


Lockdowns and supply chain disruption to accelerate Apple’s move away from China, with India a likely beneficiary, analysts say

Covid-19-related lockdowns and chip shortages are set to reduce Apple revenue by up to US$8 billion in the June quarter Vietnam and India, which are returning to normal after coronavirus disruptions, are eyeing a bigger share of Apple’s value chain

Covid-19-related lockdowns and chip shortages are set to reduce Apple revenue by up to US$8 billion in the June quarter

Vietnam and India, which are returning to normal after coronavirus disruptions, are eyeing a bigger share of Apple’s value chain