NewsBite

Apple says iPhone production hit by China Covid lockdown

Apple said Sunday that output at an iPhone 14 Pro assembly plant in Zhengzhou, China has been hit hard by Covid 19 restrictions

Apple warned customers would face longer wait times for iPhones with the holiday season approaching, after Covid restrictions in central China "temporarily impacted" production at the world's largest factory producing the smartphone.

Foxconn, Apple's principal subcontractor, locked down its massive factory in Zhengzhou last month after a spike in infections -- in line with China's zero-Covid policy. 

Panicking workers last week had fled the site on foot in the wake of allegations of poor conditions at the facility, which employs hundreds of thousands of workers.

"The facility is currently operating at significantly reduced capacity."

"Customers will experience longer wait times to receive their new products." 

But Zhengzhou is the Taiwanese company's crown jewel, churning out iPhones in quantities not seen anywhere else.

The company was initially "cautiously optimistic" about its fourth quarter earnings, it said. 

"Foxconn is now working with the government in (a) concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible," the company said. 

"This is a dark sign of the zero-Covid policy in China impacting production for Apple with Foxconn," Dan Ives, analyst at Wedbush Securities, told AFP.

- 'We are drowning' -

Multiple workers have recounted scenes of chaos and increasing disorganisation at Foxconn's complex of workshops and dormitories, which form a city-within-a-city near Zhengzhou's airport.

"We are drowning," he said.

And authorities poured cold water on speculation that the policy could be relaxed Saturday, with National Health Commission (NHC) spokesperson Mi Feng saying that Beijing would "stick unswervingly to... the overall policy of dynamic zero-Covid".

"The disease control situation is as grim and complex as ever," he said. "We must continue to put people and lives first."

...

Originally published as Apple says iPhone production hit by China Covid lockdown

Original URL: https://www.thechronicle.com.au/news/breaking-news/apple-says-iphone-production-hit-by-china-covid-lockdown/news-story/95f9ea4064bd2ff1374547528b4551d6