CNN store in New Delhi —
Apple has said shipments of its latest range of iPhones will be “temporarily” impacted by the Covid restrictions in China.
In a statement on Sunday, the company said its assembly plant in the central China city of Zhengzhou is “currently operating at significantly reduced capacity” due to Covid curbs.
“We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models,” the tech giant said. However, the company anticipates lower shipments for these models than “previously expected and customers will experience longer waits to receive their new products,” Apple added.
The Zhengzhou facility, run by Foxconn, one of Apple’s largest suppliers, has been struggling with a Covid outbreak since mid-October that has sparked panic among its migrant workers. Last week, authorities imposed a seven-day closure on the factory site.
The lockdown is putting a huge strain on Foxconn and Apple just before the start of the all-important Christmas shopping season, highlighting how China’s strict zero-Covid policy is hurting international business.
In recent weeks, leading global and Chinese companies – from automakers to tech giants – have seen tremendous disruption to their businesses as the world’s second largest economy doubles down on its zero-Covid approach.
Things may not improve anytime soon. China’s State Council reiterated its unwavering commitment to the country’s zero-Covid policy during a press conference on Saturday, despite rumors that the government may ease pandemic restrictions and shorten quarantine days.
While Apple (AAPL) has become the latest victim of China’s Covid restrictions, it is weathering the global economic downturn better than other tech giants. Last month, the company beat Wall Street analysts’ sales and earnings expectations for the quarter ended September.