iPhone 14 shipments hit by China’s Covid restrictions in Zhengzhou affecting Foxconn

New Delhi
CNN Business

Apple said shipments of its latest line of iPhones would be “temporarily affected” by Covid restrictions in China.

In a statement on Sunday, the company said its assembly plant in China’s central city of Zhengzhou is “currently operating at significantly reduced capacity” due to Covid restrictions.

“We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models,” the tech giant said. However, the company expects shipments of these models to be lower than “previously expected and customers will experience longer wait times to receive their new products,” Apple added.

Run by Foxconn, one of Apple’s largest suppliers, the Zhengzhou factory has been battling a Covid outbreak since mid-October that has caused panic among its migrant workers. Last week, authorities imposed a seven-day lockdown of the area that houses the factory.

The lockdown puts a strain on Foxconn and Apple just before the start of the holiday shopping season and shows how China’s strict Covid policy is hurting international trade.

In recent weeks, the world’s and China’s biggest companies – from automakers to tech giants – have seen huge disruptions to their businesses as the world’s second-largest economy doubles down on its zero-Covid approach.

Things might not improve anytime soon. China’s State Council reiterated its unwavering commitment to the nation’s zero Covid policy at a press conference on Saturday, despite rumors that the government may ease pandemic restrictions and reduce quarantine days.

While Apple (AAPL) has become the latest victim of Covid restrictions in China, it is weathering the global economic downturn better than its fellow tech giants. Last month, the company beat Wall Street analysts’ expectations for sales and revenue for the quarter ended September.

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