Apple expects iPhone 14 shipments to be affected by China’s Covid restrictions

Apple said shipments of its latest line of iPhones will be “temporarily impacted” by Covid restrictions in China.

In a statement on Sunday, the company said its assembly facility located in the Chinese city of Zhengzhou is “currently operating at significantly reduced capacity” due to Covid restrictions.

“We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models,” the tech giant said. However, the company expects lower shipments for these models than “previously anticipated, and customers will have longer wait times to receive their new products,” Apple added.

Managed by Foxconn, one of Apple’s biggest suppliers, the Zhengzhou facility has been facing a Covid outbreak since mid-October that has caused panic among its migrant workers. Last week, authorities imposed a seven-day lockdown in the area that houses the factory.

The lockdown is putting tremendous pressure on Foxconn and Apple just before the start of the holiday shopping season and highlights how China’s strict zero Covid policy is hurting international business.

In recent weeks, leading global and Chinese companies – from automakers to tech giants – have suffered massive disruptions to their business as the world’s second-largest economy doubles down on its zero Covid approach.

Things may not get better anytime soon. China’s state council reiterated its unwavering commitment to the country’s zero Covid policy during a news conference on Saturday, despite rumors that the government may ease pandemic restrictions and reduce quarantine days.

While Apple has become the latest victim of China’s Covid restrictions, it is weathering the global economic crisis better than other tech giants. Last month, the company beat Wall Street analysts’ sales and revenue expectations for the quarter ended in September.