Apple warned investors and customers on Sunday that it expects to ship fewer iPhone 14 Pro and iPhone 14 Pro Max units as it grapples with the ongoing Covid-19 lockdown in China.
The company said that it still sees strong demand for the pro models of the new lineup, but that it has cut its shipment estimates because of the restriction. It's a crucial time for Apple as the company prepares for the holiday season.
The facility is currently at a reduced capacity. The health and safety of the workers in the supply chain is a priority for the company.
The area surrounding the flagship plant in Zhengzhou was locked down for seven days earlier this month, double the restriction placed on the region last month.
About 200,000 workers live and work in the assembly line of the iPhone city. According to analysts at Counterpoint, four out of five of the current generation iPhones are produced by the plant owned by Foxconn.
In a separate announcement, Foxconn said on Sunday that it was working with the authorities to resume production to its full capacity as quickly as possible, and that it was revising down its own outlook for the fourth quarter.
A global supply chain disruption has disrupted Apple's shipments over the past two years. It's rare for Apple to make such disclosures at its quarterly earnings calls.
It doesn't come as a surprise that the update comes as a surprise. Tim Cook said in the recent earnings call that supply for the iPhone 14 Pro and iPhone 14 Pro Max have been limited. He said on the call that they were working hard to fulfill the demand.
The company said that it was working with its supplier to return to normal production levels.
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