iPhone 14 shipments hit by China’s Covid curbs in Zhengzhou affecting Foxconn

New Delhi
CNN Business
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Apple has said that shipments of the latest iPhone series will be “temporarily affected” by Covid restrictions in China.

In a statement on Sunday, the company said the assembly plant located in the central Chinese city of Zhengzhou is “currently operating at significantly reduced capacity,” due to Covid curbs.

“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” the tech giant said. However, the company expects lower shipments for these models than “previously expected, and customers will experience longer wait times to receive their new products,” Apple added.

Run by Foxconn, one of Apple’s biggest suppliers, the Zhengzhou plant has been struggling since mid-October with a Covid outbreak that has caused panic among migrant workers. Last week, the authorities imposed a seven-day blockade of the area that houses the factory.

The shutdown puts a huge strain on Foxconn and Apple just before the key Christmas shopping season begins, and highlights how China’s strict zero-Covid policy is hurting international business.

In recent weeks, top global and Chinese companies – from automakers to tech giants – have experienced massive disruptions to their operations as the world’s second-largest economy doubles down on its zero-Covid approach.

Things may not get better anytime soon. China’s cabinet reiterated its unwavering commitment to the nation’s zero-Covid policy during a press conference on Saturday, despite rumors that the government may loosen pandemic restrictions and cut quarantine days.

While Apple ( AAPL ) has become the latest victim of China’s Covid curbs, it is weathering the global economic slowdown better than other tech giants. Last month, the company beat Wall Street analysts’ sales and revenue expectations for the quarter that ended in September.