Apple Reduces expectations for iPhone Shipments due to the Chinese lockdown

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  • Apple Inc. said shipments of its latest premium iPhone will be lower than previously expected after China shut down operations at suppliers’ factories.

The company continues to see strong demand for its iPhone 14 Pro and iPhone 14 Pro Max models, but the lockdown means “customers will face longer wait times to receive new products,” Apple said Sunday. shipments of the iPhone 14 Pro phones are currently listed for late November or early December.

The Chinese government took the abrupt step last Wednesday by locking down the Zhengzhou region, where the iPhone assembly plant owned by Hon Hai Precision Industry is located, until November 24. 9 is expected to further disrupt factories already suffering from on-site coronavirus outbreaks, worker outflows and mandatory quarantines.

Apple said its facilities were operating at “significantly reduced capacity,” while Hon Hai, the main publicly traded arm of Taiwan’s Foxconn Technology Group, said in a separate statement that the lockdown had been implemented. It said it had lowered its guidance for the fourth quarter to reflect this.

Local governments have kept people and cars off the streets except for medical and other important reasons. The ban threatens to disrupt the flow of additional workers and parts needed to expedite production ahead of the holiday season rush.

consecutive holidays season

The disruption comes at a crucial time for his Apple, which launched his iPhone 14 amid an unprecedented downturn in global electronics demand. despite performing better than other smartphone makers, Apple has pulled back on plans to ramp up production of its new iPhones this year after the expected surge in demand didn’t materialize. Reports good results, but warns of slowdowns over vacation.

The move could exacerbate the headaches Foxconn and Apple are already facing as iPhone sales in China plummet. Apple, the world’s most valuable company, said last month that it expected growth to slow this quarter.

The Cupertino, Calif.-based company did not provide specific earnings guidance for the quarter, continuing the approach it took at the start of the Covid-19 pandemic. However, analysts estimate revenue at around $128 billion, a record high.

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