Apple warns of a hit due to a COVID disruption in iPhone shipments from China
“The iPhone 14 Pro and iPhone 14 Pro Max are in high demand. Apple claims that we now anticipate fewer iPhone 14 Pro and iPhone 14 Pro Max shipments than previously expected, “Apple claims.
Apple Inc (AAPL.O) expects lower shipments of high-end iPhone 14 more than previously forecasted due to a significant reduction in production at a virus-infected plant in China, dampening its sale outlook for the year-end holiday season.https://indiandailypost.com/?p=25891
Solid demand for the new iPhones has helped Apple remain a rare bright spot in the global technology sector. Which has been batter by spending cuts as inflation and interest rates have risen.
However, the Cupertino, California-based company has now succumbed to China’s stringent zero-COVID-19 policy. Which has already forced many global companies, including Estee Lauder Companies Inc (EL.N) and Canada Goose Holdings Inc (GOOS.TO), to close their stores in China and reduce full-year forecasts.
“The facility is now operating at significantly reduced capacity,” Apple said in a statement on Sunday. Without specifying how much production is affect.
According to Reuters, due to tightening COVID-19 curbs in China. Production of Apple’s iPhones could drop by up to 30% at one of the world’s largest factories in November.
Its main Zhengzhou plant in central China. Which employs about 200,000 people, has been rock by discontent over stringent COVID-19 control measures, with many workers fleeing the site.
Due to the problems at the Zhengzhou plant, market research firm TrendForce cut its iPhone shipments prediction for the December quarter by 2-3 million units, from 80 million previously. Last week, adding that its investigation of the situation revealed that the factory’s capacity utilisation rates were now around 70%.
