The tech giant announced that its assembly factory in China is now operating at a significantly reduced capacity. Officials closed a district home to Foxconn’s iPhone factory, the world’s largest, on November 2 for seven days.
Apple’s news comes as China reiterates its commitment to zero Covid.
“As we have done during the COVID-19 pandemic, we are prioritizing the health and safety of workers in our supply chain,” said Apple, which launched its new iPhone lineup in September.
“We continue to see strong demand for the 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 expected China to lift its Covid restrictions shortly. Chinese stock markets rose sharply on Friday on rumours of ending the Covid lockdowns.
Beijing’s uncompromising approach to stopping the spread of the virus has come at a substantial economic cost. But the country’s leader, Xi Jinping, who personally backed the policy, has not indicated that it will ease any time soon.
Trade figures and currency data due later on Monday likely indicate 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 recovered 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 some 10 million people. On Monday, it registered 3,683 cases and 22 deaths.
Cases were also detected inside the factory, leading to a sudden closure that caused workers to flee the facility.
Foxconn, the world’s largest contract electronics maker, has revised its outlook for the fourth quarter due to China’s Covid control measures. The fourth quarter is typically a busy time for the tech company as demand for electronics picks up ahead of the holiday season in the West.
The Taiwan-based company said it is working with the Henan provincial government “to eradicate the pandemic and resume production at full capacity as quickly as possible.”
Foxconn, formally known as Hon Hai Precision Industry, accounts for 70% of global iPhone shipments