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Apple warns Covid restrictions in China are affecting iPhone production


After a Covid-19 outbreak at a Foxconn factory in Zhengzhou, China, some workers chose to go home. Pictured here are the shuttles on October 30, 2022.

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

Factory run by Foxconn is operating at “significantly reduced capacity” Apple speak. It warns that it will ship fewer units and that customers will experience longer wait times when ordering devices.

Apple’s warning raises the possibility that it may sell fewer iPhones in the December quarter because it is struggling to produce enough to meet demand. It was before signal slowing growth in the 12th quarter of the previous month.

They say they continue to see strong demand for the affected models, which cost more than other iPhone models and start at $999 and $1099.

Over the past week, China ordered a lockdown in Zhengzhou, where Apple makes the majority of its iPhones. The factory in China has been struggling with employee fled the facility because of the Covid policies and its outbreak, according to Reuters.

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

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

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