Apple says iPhone supplies hurt by anti-COVID 19 curbs in China - CBS News

Apple is informing customers they'll person to hold longer to get its latest iPhone models aft anti-virus restrictions were imposed connected a contractor's mill successful cardinal China.

The institution announcement Sunday gave nary details but said the mill operated by Foxconn successful the cardinal metropolis of Zhengzhou is "operating astatine importantly reduced capacity."

"We present expect little iPhone 14 Pro and iPhone 14 Pro Max shipments than we antecedently anticipated," the institution said. "Customers volition acquisition longer hold times to person their caller products."

Foxconn Technology Group said earlier it imposed anti-virus measures connected the mill successful Zhengzhou pursuing microorganism outbreaks. Apple and Foxconn antecedently hadn't responded to questions astir however iPhone accumulation mightiness beryllium affected. Last week, entree to the concern portion wherever the mill is located was suspended for 1 week pursuing a surge successful infections successful Zhengzhou and the departure of workers from the factory.

The lockdown is expected to origin further disruptions to the plant, which successful caller weeks has seen a spate of coronavirus infections and an exodus of workers, immoderate of whom fled the mill connected foot.

"Gut punch"

"After battling the macro headwinds and delivering a beardown September quarter/guidance successful a stark opposition to the remainder of Big Tech, this latest zero COVID concern is an implicit gut punch for Apple successful its astir important vacation quarter," Wedbush analysts said successful a report.

They added, "If Zhengzhou remains astatine little capableness the adjacent fewer weeks, this would origin wide iPhone Pro shortages into the all-important Christmas clip period, particularly successful the U.S."

Foxconn said successful a connection that it is revising its outlook for this 4th downward owed to the lockdown.

"Foxconn is present moving with the authorities successful a concerted effort to stamp retired the pandemic and resume accumulation to its afloat capableness arsenic rapidly arsenic possible," the institution said Monday.

It besides said that the provincial authorities has said it volition "fully support" Foxconn successful managing the plant's pandemic prevention and cognition situation.

In a station connected the Zhengzhou plant's WeChat societal media relationship Sunday, the institution said a "closed loop" strategy would restrict its employees' question betwixt their dormitories and the mill country to negociate risks of COVID-19 transmission.

The past 4th of the twelvemonth is typically a engaged play for companies similar Foxconn arsenic they ramp up accumulation up of the extremity of twelvemonth vacation rush.

"We are moving intimately with our supplier to instrumentality to mean accumulation levels portion ensuring the wellness and information of each worker," Apple said.

While different large exertion companies person struggled this twelvemonth arsenic the system slows, Apple has proved much resilient. Its fiscal fourth-quarter gross roseate 8% from the aforesaid clip past twelvemonth to $90.1 billion, portion its profits roseate astir 1% to $20.72 billion.

In:
• Apple
• COVID-19 Pandemic
• China
• Coronavirus
• Asia