Iphone 14

Apple anticipates that iPhone 14 shipments will be affected by China’s Covid curbs

Apple stated that the Covid restrictions in China will affect shipments of its latest iPhone lineup.

The company stated in a Sunday statement that the assembly plant located in Zhengzhou, central China, is currently operating at a significantly reduced capacity due to Covid curbs.

The tech giant stated that there is still strong demand for iPhone 14 Pro Max and iPhone 14 Pro Max models. Apple stated that the company anticipates lower shipments of these models than it had previously anticipated. Customers will also have longer wait times for their new products.

Foxconn, Apple’s largest supplier, runs the Zhengzhou facility. Since mid-October, it has been dealing with a Covid epidemic that has caused panic among its migrant worker workers. Authorities placed a seven-day lockdown on the area housing the factory last week.

This lockdown puts an enormous strain on Foxconn, and Apple right before the holiday shopping season starts. It also highlights how China’s strict zero-Covid policy is hurting international businesses.

As the second-largest economy in the world doubles its zero-Covid strategy, many top global and Chinese businesses — including carmakers and tech giants — have been experiencing major disruptions to their operations.

These things are unlikely to improve any time soon. The China state council reiterated its commitment to the nation’s zero-Covid policy at a press conference held on Saturday. This was despite rumors suggesting that the government may loosen pandemic restrictions or reduce quarantine days.

Apple (AAPL), while it has fallen prey to China’s Covid curbs recently, is faring better than other tech giants in the global economic downturn. The company’s September quarter sales and income forecasts beat those of Wall Street analysts.

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