Apple has said that shipments of its latest iPhone network will be “temporarily” affected by Covid restrictions in China.
In a statement on Sunday, the company said its assembly facility in the central Chinese city of Zhengzhou is “currently operating at significantly reduced capacity” due to Covid restrictions.
“We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models,” the tech giant said. However, the company “expects lower shipments than previously anticipated and longer wait times for customers to receive new products,” Apple added.
Run by Foxconn, one of Apple’s biggest suppliers, its Zhengzhou facility has been dealing since mid-October with an outbreak of Covid that has caused panic among its migrant workers. Last week, authorities imposed a seven-day lockdown in the area where the factory is located.
The lockdown is putting enormous strain on Foxconn and Apple ahead of the start of the main holiday shopping season and highlights how China’s strict zero-Covid policy is hurting international business.
In recent weeks, global and Chinese companies – from carmakers to tech giants – have experienced major business disruptions as the world’s second-largest economy doubles down on its zero-Covid vision.
Things may not get better anytime soon. China’s state council reiterated its firm commitment to the nation’s zero-Covid policy at a news conference on Saturday, despite rumors that the government may loosen pandemic restrictions and cut quarantine days.
Although Apple (AAPL) has become China’s latest victim of Covid, it is weathering the global economic downturn better than other tech companies. Last month, the company beat Wall Street analysts’ sales and revenue expectations for the quarter ended in September.