Apple announced on Sunday, November 6, that less shipments of the latest iPhone 14 models would be lower than previously expected after Chinese authorities locked down areas around its key supplier’s factory. 

According to Bloomberg, the tech giant said, “The facility is currently operating at significantly reduced capacity.” 

It added, “We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated.” 

The latest move from Apple came last Wednesday as the Chinese regime suddenly locked down the Zhengzhou area where Foxconn’s iPhone assembly factory is located. The lockdown is expected to last until November 9, affecting the production of the iPhone. 

Workers at this main factory reportedly showed discontent over the strict COVID measures as some fled the facility, disrupting production.

Reuters last week reported that Apple’s iPhone production could drop by as much as 30% in the next month due to the lockdown.  

Reuters cited analysts at Taipei-based Fubon Research saying that Foxconn is Apple’s biggest iPhone producer, accounting for 70% of iPhone shipments globally.

In response to the lockdown, the company issued a statement, saying, “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.” 

Apple is the world’s biggest firm, with a market capitalization of $2.2 trillion. It forecast in October that its revenue growth would drop below 8% in the fourth quarter.

Apple launched the iPhone 14 in September and saw strong demand for the model, but the lockdowns could cause customers to “experience longer wait times to receive their new products.”

Quincy Krosby, a chief global strategist at LPL Financial in Charlotte, North Carolina, told Reuters, “Anything that affects Apple’s production obviously affects their share price. But this is part of a much deeper story – the uncertainty surrounding the future of the Chinese economy.”

Foxconn’s main Zhengzhou plant is one of the world’s largest factories which hires about 200,000 workers. Sources told Reuters that production continued at this facility after the incident, under “closed loop” measures, in which workers live and work on-site to make up for the shortfall.

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