Apple warns that China’s Covid restrictions are hurting iPhone production

After a Covid outbreak at a Foxconn factory in Zhengzhou, China, some workers opted to go home. In the photo, the shuttles of October 30, 2022.

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Apple said in a statement on Sunday that it had temporarily reduced iPhone 14 production due to Covid-19 restrictions at its main iPhone 14 Pro and iPhone 14 Pro Max assembly plant in Zhengzhou, China. China.

The plant, operated by Foxconn, is operating at “significantly reduced capacity” Apple said. He warned that he would ship fewer units and that customers would experience longer wait times when ordering devices.

Apple’s warning raises the possibility that it will sell fewer iPhones in the December quarter as it struggles to manufacture enough to meet demand. It had previously reported slowing growth in the December quarter last month.

He said he continues to see strong demand for the affected models, which are more expensive than other iPhone models and start at $999 and $1,099.

Last week, China ordered shutdowns in Zhengzhou, where Apple does the majority of its iPhone production. The factory in China has been struggling with employees fleeing the factory due to its policies and Covid outbreaks, according to Reuters.

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China continues to pursue a “zero-Covid” policy that requires facilities like the iPhone facility in Zhengzhou to operate in “closed loops,” where workers isolate themselves in dormitories and work in factories separate from the outside world.

It currently takes 31 days to receive an iPhone 14 Pro if ordered from Apple’s website, which is longer than the average 2-day turnaround for cheaper iPhone models, Apple said on Sunday. JPMorgan analyst Samik Chatterjee in a note.

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