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Apple iPhone 14 deals with new production of COVID-19 Lockdowns

Apple iPhone 14 deals with new production of COVID-19 Lockdowns

Apple iPhone 14 deals with new production of COVID-19 Lockdowns

computing news


Shane Snyder


Apple says the new lockdowns against the epidemic have temporarily affected production of the iPhone 14 Pro and iPhone 14 Pro Max models at its Foxconn plant in Zhengzhou, China.

Apple iPhone 14 deals with new production of COVID-19 Lockdowns

With light demand already hitting entry-level iPhone models, Apple Sunday said new factory closures for COVID-19 in China will create “lower” shipments and “significantly reduced capacity” for Max and Pro models heading into an important holiday shopping season.

The company said in a statement that customers should expect longer waiting times when ordering. China’s “zero COVID” policy has throttled production at Apple’s primary iPhone 14 Pro and iPhone 14 Pro Max assembly plant operated by Foxconn in Zhengzhou, China.

Wedbush analysts Dan Ives and John Katsingris said the news could not come at a worse time for Apple – one of the few companies to post strong financial results in the face of tough economic times. “After battling overall headwinds and providing strong guidance for the September quarter in stark contrast to the rest of the major tech companies, the recent Covid absence is a major blow to Apple in its most important holiday quarter,” the analysts wrote, adding that they expect the shutdowns to negatively affect Apple. Approximately 3 percent of iPhone sales this quarter.

“While there is no news any bull would like to hear from Apple, it is a supply issue and it has to do with China’s zero Covid policy, a very frustrating situation for Apple (and its investors) once again but not driven by demand,” they wrote. Wedbush maintains a price target of $200 despite the news.

Taiwan-based research firm Trendforce expects fourth-quarter iPhone shipments to be reduced by 2. million to 3 million units. Zhengzhou was hit by a wave of the COVID-19 outbreak in mid-October. The company said that China’s policy on COVID could lead to a decline in iPhone shipments in the first quarter of 2023, which fears that the increased spread of COVID in the winter will affect production.

This isn’t the first Foxconn shutdown in China that has slowed Apple production this year. In March, shutdowns at a manufacturing hub in Shenzhen, China, were hit hard by the COVID lockdowns. This shutdown led to the temporary closure of two Foxconn plants. Foxconn responded to the crisis with a “closed-loop” strategy in which workers lived on campus and tested daily. With that, Apple’s supply chain and other tech companies have received great success. Apple warned of revenue damage of up to 8 billion dollars, but managed to keep this decline below 4 billion dollars Second quarter results.

Apple said it was focusing on working with factories to protect workers while operations resume. “As we have done throughout the COVID-19 pandemic, we prioritize the health and safety of workers in our supply chain,” the company said in a statement. “We are working closely with our suppliers to return to normal production levels while ensuring the health and safety of every worker.”

Apple was one of the The only bright spots For the tech industry in 2022 as the pandemic-fuelled demand wanes. The company’s fourth-quarter results beat expectations with record-breaking Mac revenue and strong results overall for its smartphones and wearables.

“The world remains unpredictable, with old challenges evolving and new ones emerging,” Apple CEO Tim Cook said during a conference call.

Trendforce said the company could see worse results in 2023. “The winter season is generally conducive to the spread of diseases like COVID-19. Thus, there is a possibility that China will enact COVID-free lockdowns at a more frequent pace in the future. Such a scenario would Expands the effects of this policy on the demand side and disrupts Apple’s iPhone production plan for the first quarter of 2023,” the company wrote.


Shane Snyder

Shane Snyder is a senior associate editor covering personal computing, mobile devices, semiconductor news, device reviews, breaking news, and live events. Shane is a veteran journalist who has worked for newspapers in Northern New York and North Carolina. It can be accessed at [email protected].




#Apple #iPhone #deals #production #COVID19 #Lockdowns

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