Apple says China's COVID regulations hamper iPhone production

After a Covid outbreak at a Foxconn factory in Zhengzhou, China, some workers chose to go home. Pictured here are the shuttle buses on Oct. 30, 2022. (Photo: VCG via Getty Images)

Apple stated in a statement on Sunday that manufacturing of the iPhone 14 has been temporarily reduced due to Covid-19 restrictions at its major iPhone 14 Pro and iPhone 14 Pro Max assembly factory in Zhengzhou, China.

Apple stated that Foxconn's facility is running at "substantially reduced capacity." It cautioned that it would send fewer units and that consumers who ordered gadgets would have longer wait times.

Apple's warning raises the likelihood that it could sell fewer iPhones in the December quarter since the company is having problems meeting demand. Last month, it projected a slowdown in growth for the December quarter.

Apple stated that demand for the impacted handsets, which are more expensive than other iPhone models and start at $999 and $1099, remains strong.

In the past week, China has ordered lockdowns in Zhengzhou, where the majority of iPhones are manufactured by Apple. According to Reuters, the Chinese manufacturer has struggled with staff leaving due to its Covid regulations and outbreaks.

China continues to pursue a "zero-Covid" policy that mandates facilities, like the iPhone factory in Zhengzhou, to function as "closed loops" in which workers live in dormitories and work in factories that are sealed off from the outside world.

Currently, it takes 31 days to obtain an iPhone 14 Pro from Apple's website, which is longer than the average of two days for less expensive iPhone models, JPMorgan analyst Samik Chatterjee wrote in a Sunday note.

Publish : 2022-11-07 10:20:00

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