Apple Announced iPhone Production Disrupted by China Covid-19 Lockdown

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Apple, which launched iPhone 14 Pro and iPhone 14 Pro Max in September, announced customers will face a longer wait for shipment of the product due to Covid-19 outbreak in China. “The facility is currently working on the significantly reduced capacity.” Apple mentioned in a statement on Sunday without elaborating how much production has been impacted.

Apple’s principal subcontractor, Foxconn has been suffering from Covid-19 cases at its Zhengzhou site, leading the company which employees over 200,000 people, has to shutter the vast complex in a bid to keep the virus in check. Many scared workers fleeing the site on foot in the wake of allegations of poor conditions at the facility.

“Anything that affects Apple’s production obviously affects their share prices.” said Quincy Krosby, chief global strategist at LPL Financial in Charllote, North Carolina. The world’s most valuable company with a market capitalization of $2.2 trillion forecast in October its revenue growth would fall below 8% in the December quarter.

Apple has cut its iPhone shipments forecast for the December quarter by 2-3 million units, from 80 million previously, due to the troubles at the Zhengzhou plants, adding that its investigation of the situation found that the factory’s capacity utilization rates were now around 70%. The operation of the Zhengzhou factory told on Monday it was working to resume full production at the plant as soon as possible, and revised down its 4^th quarter outlook.

Company said it would implement new measures at the plant to curb the spread of COVID-19, including a system that would restrict working employees travel to between their dormitory and factory area. Foxconn also working along with the government in concerted effort to stamp out the pandemic and resume  production to its full capacity as quickly as possible.

Taiwan’s tech companies announces that the 4^th quarter is going to become a hot season as they are increasing  supply of cellphones, tablets and other electronics for the year-end holiday period in western markets.