Apple Says iPhone Production at China Plant Reduced due to Covid Curbs

Apple announced on Sunday that it has temporarily cut iPhone 14 production due to Covid-19 restrictions at its principal iPhone manufacturing factory in Zhengzhou, China.

The factory, operated by Taiwan’s Foxconn, Apple Inc’s biggest iPhone maker, is operating at “significantly reduced capacity,” Apple said. It said there might be a delay in receiving orders and fewer devices shipped.

Due to production difficulties, Apple has warned that iPhone sales could be lower than expected in the December quarter. 

It stated that there is still strong demand for the iPhone 14, which is more expensive than other iPhone models.

Foxconn’s factory in the Zhengzhou Airport Economy Zone in central China was placed under a seven-day lockdown by Chinese authorities on Wednesday, a move that is expected to increase the pressure on the Apple supplier as it tries to calm unrest among its workforce.

According to a note by JPMorgan analyst Samik Chatterjee published on Sunday, the average time frame for less costly iPhone models is 2 days, but it presently takes 31 days to obtain an iPhone 14 Pro if ordered via Apple’s website.

Foxconn, meanwhile, trimmed down its fourth quarter outlook on Monday while saying it was working to resume full production at a major plant in Zhengzhou, China as soon as possible.