Home » Apple warns of iPhone shipment delays because of China lockdowns

Apple warns of iPhone shipment delays because of China lockdowns

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Apple has warned that global shipments of its latest high-end iPhones will be delayed after China’s coronavirus-free lockdown wreaked havoc at factories run by major supplier Foxconn.

The tech group made a rare announcement on Sunday about iPhone delays. ‘Significant’ headwinds Sales growth slowed down due to the strong dollar and limited supply of high-end models.

Apple said demand for the iPhone 14 Pro and Pro Max models helped boost iPhone revenue by 10% last quarter, but added: . . Shipments are higher than previously expected and customers will experience long waits to receive new products. “

The iPhone accounts for about half of Apple’s global sales, and the December quarter is typically the most profitable time of the year. Apple has repeatedly said Covid-19 constraints are causing billions of dollars’ worth of supply problems throughout the pandemic, but has not issued such a warning outside of its earnings call since February 2020. .

The delay comes after it occurred inside a 200,000-person factory complex in Zhengzhou owned by Foxconn, Apple’s largest iPhone maker. workers fearing contact restrictions, performed Exodus amid the coronavirus outbreak at a manufacturing facility. Analysts warn that disruptions will worsen heading into winter after more than three-quarters of China’s largest cities reported new Covid cases in October.

Supply constraints could further hamper year-over-year earnings growth in the December quarter after Apple warned last month that earnings would “slow” from 8% growth in the September quarter.

The announcement could put pressure on Apple’s stock when markets open on Monday. The company’s stock has fallen $800 billion this year, bringing its market capitalization to his $2.2 trillion, but still the highest among American tech giants.

Creative Strategies analyst Carolina Milanesi said:

Foxconn separately announced on Sunday that it was “downgrading” its fourth quarter outlook due to the lockdown in Zhengzhou.

“Regarding the pandemic prevention and operational status of Zhengzhou Park, the Henan provincial government, as usual, has made it clear that it fully supports Foxconn in Henan. Foxconn is now working with the government to eradicate the pandemic. We are working to get production back to full capacity as quickly as possible.”

Apple said, “Our primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility is located in Zhengzhou, China . . . is currently operating at significantly reduced capacity.” We are working closely with our suppliers to return to normal production levels while ensuring

Saturday, Beijing Market Rumors Suppressed It is considering easing China’s strict zero-Covid restrictions that led to a surge in Chinese stocks in Hong Kong last week.

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