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Shanghai Workers Take A Big Bite Of The Apple.
Apple’s problems with supply chain delays in semiconductors, strategic metal inputs, transportation logistics, and higher energy prices are well-known. Similarly, Apple is hindered by the Zero Covid policy being pursued by Comrade Xi Jinping in China.
That policy makes no sense because the SARS-CoV-2 virus (the cause of COVID) is highly contagious, minutely small, and can be suspended in mid-air for 30 minutes or more according to the best evidence. That means you will never get to Zero Covid and efforts to do so will only make things worse.
The solution to the COVID pandemic is to be outdoors getting fresh air and sunshine. Public health resources should be directed to the most vulnerable including those over 60, the obese, diabetics, and others with comorbidities including acute asthma.
Over time, most people will get the disease, but the cases are mild; not too different from a cold or the flu. The best vaccine is the disease itself. This leaves you with robust natural antibodies. The result is herd immunity and the virus gradually fades as has happened in the U.S., Canada, and Europe.
Instead, China locks down entire cities, requires people to remain indoors (which spreads the disease), imposes curfews, and curtails travel. In many cases, entire neighborhoods are moved to quarantine concentration camps based on a single infection in an apartment building or factory.
China’s policy has resulted in the lockdowns of the two largest cities in China – Shanghai and Beijing – with a combined population of over 50 million. Needless to say, this means Apple’s factories are shut down along with others.
Now comes an even worse result for Apple, as reported in this article.
Apple factory workers in Shanghai have rioted at the Apple plant by storming the gates and pushing past security guards in protest against the lockdowns. In effect, the COVID insanity of the government has merged with disrupted supply chains and disgruntled workers into a potent brew of anger, frustration, and stopped production.
At this point, Apple probably wishes that they had relocated from China earlier. No doubt, they are planning to do so now.
In the meantime, China will be an albatross around Apple’s neck resulting in stopped shipments, lower productivity, and lower profits as a result.
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