Apple warns ongoing COVID-19 lockdowns in China will significantly affect iPhone production

Apple warns ongoing COVID-19 lockdowns in China will significantly affect iPhone production

Apple warned that COVID-19 lockdowns in Porcelain are “significantly” affecting their iPhone supply chain.

“COVID-19 restrictions have temporarily affected the iPhone 14 Pro and iPhone 14 Pro Max main assembly plant located in Zhengzhou, China,” the company said in a statement. statement on Sunday. “The facility is currently operating at a significantly reduced capacity.”

The factory makes Apple’s most expensive high-end iPhone models.

But as the lives and livelihoods of Apple’s assembly line employees in China are thrown into disarray by China’s ruling Chinese Communist Party’s (CCP) zero-COVID policies, Apple is feeling the impacts of COVID-19. current COVID-19 restrictions.

“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 company warned its consumers.

According to the statement, the company is “prioritizing the health and safety of workers in our supply chain.”

The affected Apple supplier in Zhengzhou is Foxconn. Its Zhengzhou factory is Apple’s largest iPhone assembly plant in the world and Apple’s main source of global supply.

Foxconn said Monday in response to Apple’s statement that it “is now working with the government on [a] concerted effort to eradicate the pandemic and resume production at full capacity as quickly as possible.”

He added that new measures would be implemented to curb the spread of COVID-19 in the factory through a system that restricts the movements of factory workers.

Under CCP policies, many workers at the plant in the Henan provincial capital were forced to undergo mandatory quarantine after a cluster of positive COVID-19 cases was detected late last month.

According to notices seen by The times of the timeTens of thousands of workers were quarantined during the initial outbreak, though some have been released after testing consecutively negative for several days. financial time described the number of people leaving as a mass “exodus” in an Oct. 30 report.

Authorities ordered a seven-day closure for the industrial park where the iPhone factory is located on November 2.

Those who tested positive remain stuck in quarantine, with workers complaining of the lack of basic food, medicine and basic supplies.

Foxconn’s Zhengzhou plant has around 300,000 employees.

Supply chains in China

of Apple supply chain in China has been suffering from the CCP’s COVID restrictions since at least April of this year, with another of its Taiwanese suppliers, Pegatron, with factories in Shanghai reporting impacts to operations under the city’s infamous mass lockdowns at the time. Pegatron predicted that the outages would cost the company up to $8 billion in revenue that quarter.

Several Foxconn plants in southern China have also been affected by lockdowns. In August, the company signed a $300 million memorandum of understanding with a developer to expand its facility in northern Vietnam, signaling considerations for expanding operations outside of China, as companies there still face uncertainty over the CCP’s seemingly undefined policies destroying the economy without COVID.

In 2021, Foxconn invested $1.5 billion in Vietnam, according to the government of the Southeast Asian country. The Apple supplier also has smaller production sites in India.

Foxconn said on Monday it had revised down its outlook for the fourth quarter of the year. Post third-quarter earnings on November 10.

Jessica Mao and Reuters contributed to this report.

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Melanie is an Australia-based reporter and editor who covers world news. She has a background in environmental research.

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