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Apple is dealing with the same crisis as the rest of the tech industry, and the company will likely have another setback.
According to the tech giant, some of the shipments of iPhone 14 models will be “temporarily affected” by Covid restrictions in China.
Last week, China’s largest iPhone assembly site suffered a Covid outbreak, creating a problem for the tech giant.
Statement
Apple released a statement on Sunday to shed some light on the situation.
The company announced that its Zhengzhou assembly plant is operating at significantly reduced capacity due to Covid restrictions.
“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” Apple’s statement reads.
The company expects fewer Pro model shipments than expected despite the positive news.
They also said customers will have to wait longer to receive their new iPhone models.
Read also: Apple continues to fare well amid economic downturn
Outbreak and lockdown
The Zhengzhou factory is one of the largest suppliers of the tech giant.
Foxconn, Apple’s largest supplier, operates the Zhengzhou plant.
Since mid-October, the facility has been fighting a Covid epidemic triggering panic among migrant workers.
Last week, authorities ordered a seven-day closure of the factory site.
The lockdown, while necessary, puts pressure on Foxconn and Apple, especially as the holiday season is nearing.
It also highlights the influence of China’s strict zero-Covid policy, which harms domestic and international businesses.
China’s approach
Recently, global and Chinese companies across various industries face severe business disruptions.
The disruption comes from China stepping up its zero-covid approach.
While things are unlikely to improve anytime soon, China’s State Council reiterated its unwavering commitment to the zero-covid policy at a press conference on Saturday.
The statement comes after rumors were circulating that the Chinese government will be easing restrictions on the pandemic and reducing quarantine days.
Read also: Elon Musk to shift revenue from ads to Twitter Blue
Other notes
Although the tech giant is the latest victim of China’s zero-Covid policy, Apple is outpacing its compatriots in the tech sector despite the global economic downturn.
In October, Apple beat Wall Street analysts’ sales and earnings forecasts for the September quarter.
Reference:
Apple expects iPhone 14 shipments to be hit by China’s Covid curbs
