Apple iPhone shipment to be impacted by China policy

Image source: Digital Trends

Apple is grappling with the same crisis as the rest of the industry, but the company is facing another blow.

According to the tech giant, the iPhone 14 models’ shipments will be “temporarily impacted” by Covid restrictions in China.

Last week, China’s largest iPhone assembling site experienced a Covid outbreak that caused a problem for Apple.

Statement

Apple issued a statement on Sunday to provide an update on the situation.

The company announced that the Zhengzhou assembly plant is operating at significantly reduced capacity due to Covid restrictions.

“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” Apple’s statement reads.

Despite the positive news, the company still expects lower-than-expected deliveries for the Pro models.

They also note that customers will have to endure a longer wait to receive their new products.

Outbreak and lockdown

Zhengzhou factory is one of Apple’s largest suppliers.

Foxconn, the tech giant’s largest provider, operates the Zhengzhou factory.

Since mid-October, the facility has struggled with a Covid outbreak that has caused panic among its migrant workers.

Last week, authorities ordered a seven-day lockdown in the factory’s area.

While necessary, the lockdown puts Foxconn and Apple under pressure, especially as the holiday season is about to begin.

It also highlights the impact of China’s strict zero-Covid policy, which harms domestic and international businesses.

China’s approach

Recently, global and Chinese companies in various industries have experienced severe business disruptions.

The disruption comes from China, which is stepping up its zero-Covid approach.

Although things are unlikely to improve anytime soon, China’s State Council reiterated its unwavering commitment to the zero-Covid policy at a press conference on Saturday.

The statement of commitment comes after rumors spread that the Chinese government will loosen pandemic restrictions and reduce quarantine days.

Other notes

Although Apple is the latest victim of China’s zero Covid policy, the tech giant is doing better than its tech compatriots despite the global economic downturn.

Last month, Apple beat Wall Street analysts’ sales and earnings forecasts for the September quarter.

Reference:

Apple expects iPhone 14 shipments to be hit by China’s Covid curbs

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