19.2 C
Monday, July 22, 2024
HomeBusinessiPhone shipments delayed over China Covid lockdown

iPhone shipments delayed over China Covid lockdown

(BBC)-Itching to buy the latest iPhone 14 Pro or iPhone Pro Max? Apple says you should expect longer wait times to receive its new products.

The tech giant announced its assembly factory in China is now operating at a significantly reduced capacity.

Officials locked down a district home to Foxconn’s iPhone factory – the world’s largest – on 2 November for seven days.

Apple’s news comes as China reiterates its commitment to zero Covid.

“As we have done throughout the COVID-19 pandemic, we are prioritising the health and safety of the workers in our supply chain,” said a statement from Apple, which launched its new iPhone line in September.

“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.”

The announcement will likely disappoint investors who were hoping China would lift its Covid restrictions in the near future. Chinese stock markets rose sharply on Friday on the back of rumours of an end to Covid lockdowns.

Beijing’s unyielding approach to arresting the spread of the virus has come at a huge economic cost. But the country’s leader Xi Jinping, who has personally endorsed the policy, has given no indication that it will ease soon.

Trade figures and foreign exchange data due later on Monday are likely to give an indication of how the world’s second-largest economy is coping with challenges posed by persistent Covid restrictions, a prolonged property slump and the risk of a global recession.

China’s third quarter gross domestic product data showed its economy rebounded faster than expected to 3.9% due to an influx of government investment.

The country reported 5,643 new Covid infections on Sunday, its highest daily tally in six months. Zhengzhou, where the Foxconn factory is located, is the capital of Henan province in central China and is home to about 10 million people. It recorded 3,683 cases and 22 deaths on Monday.

Cases were also detected inside the factory, prompting a sudden shutdown that led to workers fleeing the premises.

Foxconn, the world’s largest contract electronic maker, has revised down its fourth quarter outlook due to China’s Covid control measures. The fourth quarter is usually a busy time for the tech company as demand for electronics rises ahead of the year-end holiday season in the West.

The Taiwan-based company said they are working with the Henan provincial government “to stamp out the pandemic and resume production to its full capacity as quickly as possible”.

Foxconn, formally known as Hon Hai Precision Industry, accounts for 70% of iPhone shipments globally.


Most Popular