Apple expects lower shipments of its latest iPhones after China lockdowns affected operations at its supplier's factory.
Apple said it expects lower shipments of its newest iPhones than previously expected after China lockdowns affected operations at a supplier’s factory.
The company continues to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models but the lockdowns mean “customers will experience longer wait times to receive their new products,” Apple said in a statement on Nov 6.
The abrupt move by the Chinese government on Nov 2 to lock down the plant operated by Hon Hai Precision Industry until Nov 9 is expected to further disrupt a factory already grappling with an on-site coronavirus outbreak, worker exodus and enforced quarantine.
While local officials said production at the plant basically remains normal, Hon Hai said in a separate statement that it’s lowering its fourth-quarter outlook to factor in the lockdown.
The local government has ordered people and vehicles off the streets except for medical or other essential reasons, a prohibition that threatens to cut off the flow of additional workers and components needed to rev up production ahead of the holiday-season crush.
The measures may further compound the headaches Foxconn and Apple are already facing as iPhones’ sales slow in China.
Meanwhile, Foxconn’s plant continues to operate within a “closed loop,” or a self-contained bubble that limits contact with the outside world. That is keeping some production going.
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