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    Home » Chinese Zero-COVID policy hurting Apple when it matters the most
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    Chinese Zero-COVID policy hurting Apple when it matters the most

    Reports suggest that tightened COVID-19 regulations in China might cause the output of Apple's iPhones to decline by as much as 30 percent in November at one of the largest plants in the world.
    News DeskBy News DeskNovember 7, 2022
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    iPhone Sales Decline Sharply
    Image: Chris Nagahama @ Unsplash

    Zhengzhou, China: Due to a significant reduction in production at a Chinese plant affected by COVID, tech giant Apple expects lower shipments of high-end iPhone 14 models than originally planned, negatively impacting its sales projection for the year-end Christmas season.

    The iPhone maker has remained a rare bright spot in the global electronics industry, which has been severely impacted by spending cuts as a result of rising inflation and interest rates, thanks in part to strong demand for the new iPhones.

    The strict zero-COVID-19 policy in China, which has already forced numerous international companies, like Estee Lauder Companies and Canada Goose Holdings to close their stores there and lower full-year predictions, has also claimed a victim in the Cupertino, California-based corporation.

    Apple 14 Britain Herald
    Image: Quinn Battick @ Unsplash

    Without specifying how much manufacturing has been affected, Apple stated in a statement that “the plant is now working at severely reduced capacity. 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 phone maker observed.

    According to the Reuters report from last month, tightened COVID-19 regulations in China might cause the output of Apple’s iPhones to decline by as much as 30 percent in November at one of the largest plants in the world. With many employees leaving the site, its flagship Zhengzhou facility in central China, which employs nearly 200,000 people, has been shaken by unrest over strict efforts to stop the outbreak of COVID-19.

    China Covid Britain Herald
    Rep. Image: Ketut Subiyanto @ Pexels

    As a result of issues at the Zhengzhou plant, market research firm TrendForce reported recently that it has reduced its forecast for iPhone shipments for the December quarter by 2-3 million units, from 80 million heretofore. The research firm added that after looking into the situation, it discovered that the factory’s capacity utilization rates were now around 70 percent.

    One day after health officials announced they would maintain tough coronavirus limitations, China revealed the greatest number of new COVID-19 infections in six months, presumably disappointing recent investor hopes for a softening.

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