Apple warns of iPhone delays amid Covid outbreak in China
Apple says iPhone customers will be hit with lengthy delays as the tech giant’s virus-ravaged plant in China descends into chaos.
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Apple expects lower shipments of high-end iPhone 14 models following a huge drop in production levels due to a virus-ravaged factory in China.
The tech giant said deliveries of the iPhone 14 Pro and iPhone Pro Max will be affected by the major disruption at the huge assembly facility in Zhengzhou.
“The facility is currently operating at significantly reduced capacity,” the iPhone maker said in a statement.
“Customers will experience longer wait times to receive their new products.”
Production at the Zhengzhou plant, one of the world’s biggest factories, is set to slump due to tightening Covid curbs in China.
The plant in central China employs about 200,000 people and has been rocked by discontent over stringent Covid-19 measures, with many workers reportedly fleeing the site.
With the Christmas holiday season fast approaching — a prime time for consumers to spend big — Apple said customers would have to wait longer to receive their new iPhones, which were released in September.
It is not yet clear how Australian customers will be affected by the delays. News Corp Australia has contacted Apple Australia for comment.
“Anything that affects Apple’s production obviously affects their share price,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, told Reuters.
“But this is part of a much deeper story – the uncertainty surrounding the future of the Chinese economy … These headlines are part of the ongoing saga as to whether there is any truth to the consistent rumours that authorities are discussing whether some of the measures will be lifted in the first quarter.”
Over the weekend, China reported its highest number of new Covid-19 infections in six months, a day after health officials said they were sticking with strict coronavirus curbs, likely disappointing recent investor hopes for an easing.
The Zhengzhou Airport Economy Zone has placed the plant under China’s lowest “static management” tier of lockdown until midday on November 9.
In late October, workers were filmed fleeing the site after complaining about their treatment and provisions via social media.
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Originally published as Apple warns of iPhone delays amid Covid outbreak in China
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