Apple warned shoppers to expect delays in getting its new products after a major Chinese factory was shut down.
The assembly plant in Zhengzhou is at a reduced capacity.
The district where the world's largest factory is located was locked down for a week in November.
China reiterates its commitment to zero covid.
The health and safety of the workers in the supply chain is a priority for Apple.
Strong demand continues for the iPhone 14 Pro and iPhone 14 Pro Max models. Customers will experience longer wait times to receive their new products, because we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments.
The announcement won't impress investors who were hoping that China would lift its Covid restrictions. Rumors of an end to Covid lockdowns caused the Chinese stock markets to rise.
Beijing's approach to fighting the spread of the virus has cost the economy a lot. The policy has been endorsed by the country's leader, but he has not indicated that it will be changed soon.
The risk of a global recession, persistent Covid restrictions, and a property slump are some of the challenges the world's second-largest economy is facing.
China's imports and exports fell in October. The last slump was in May 2020. Outbound shipments for the month were down in comparison to a year earlier. It was the worst performance in a long time.
There were 5,643 new Covid infections in the country on Sunday. The capital of Zhengzhou is home to about 10 million people. There were 22 deaths on Monday.
Workers fled the premises when the factory suddenly shut down due to cases inside. The company began a recruitment drive on Monday. If the workers return to work, they will get a one-time bonus of 500 yuan.
According to a statement on its recruitment account, it is also offering a pay increase.
China's Covid control measures have caused the world's largest contract electronic maker to revise down its fourth quarter outlook. The fourth quarter is a busy time for the tech company as demand for electronics increases ahead of the holiday season in the West.
The company from Taiwan said they are working with the provincial government to stamp out the Pandemic and resume production as soon as possible.
70% of iPhone shipments are made by Hon Hai Precision Industry.
There is a Disney's Covid lock down in Shanghai.
All Rights Reserved © 2024
