Apple iPhone assembly plant under new Covid lockdown in China

Apple iPhone assembly plant under new Covid lockdown in China

Apple iPhone assembly plant under new Covid lockdown in China

Apple supplier Foxconn reported that it beat its net profit expectations in April and June.

Photo by Lam Yik Fai/Bloomberg via Getty Images

An industrial park in China that houses the world’s largest assembly plant for appleiPhones ordered to complete seven days Corona virus disease closure, according to a Reuters report.

The shutdown comes as Apple works to meet demand for some new iPhones, which were launched in September. Apple CEO, Tim Cook, I spoke to CNBC Thursday about the company’s fourth-quarter earningshe said that the company’s high-end iPhone 14 Pro phones are still limited in supply.

The report said the Zhengzhou Airport Economic Zone in central China’s Henan Province is imposing “silent management measures.” Residents are not allowed to go outside and only approved vehicles are allowed on the road until restrictions are eased on November 9.

Apple shares fell about 1% in Wednesday morning trading.

The factory in Zhengzhou is owned by Foxconn, the largest supplier of iPhones to Apple. Last week, Foxconn Zhengzhou factory said it was Had a small outbreak of covid virus.

A spokesperson for the Taiwanese company, formally known as Hon Hai Technology Group, told CNBC that operation and production at the Zhengzhou facility is “relatively stable while maintaining health and safety procedures for employees.”

An Apple representative did not immediately respond to requests for comment.

Zhengzhou is fighting a new wave of COVID-19. The city has locked down some areas as China moves forward with its no-Covid policy, using testing and lockdowns to try to tackle the virus.

The report said the lockdown represented a re-tightening of measures in the region after Zhengzhou unexpectedly lifted some restrictions on Tuesday. The city reported 358 cases of COVID-19 on Tuesday, up from 95 on Monday.

Earlier this month, Foxconn implemented virus prevention measures such as requiring employees to take a Covid test within 24 hours of entering the Zhengzhou building and urging them to get vaccinated.

Apple still relies heavily on China for the majority of its iPhone production, but the tech giant is working to diversify its supply chain.

company announced in September It is assembling its flagship iPhone 14 in India in a bid to shift some production away from China, for example.

CNBC’s Arjun Kharpal contributed to this report.

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