China’s production cut to hit iPhone 14 Pro & Pro Max shipments
Apple Inc expects lower shipments of high-end iPhone 14 models following a significant production cut as COVID surges in China, reducing its sales outlook for the year-end holiday season.
The company has now fallen victim to China’s rigorous zero-COVID-19 policy, which has already prompted many global firms including Ester Lauder Companies Inc and Canada Goose Holdings Inc to shut their stores in China and cut full-year forecasts.
The production of Apple’s iPhones was previously forecasted to fall by as much as 30% at one of the world’s biggest factories due to tightening COVID-19 curbs in China. With a market capitalisation of $2.2 trillion forecast in October, the company’s revenue growth would fall below 8% in the December quarter.
Apple said, “The facility is currently operating at significantly 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.”
Taiwan’s Foxconn, the operator of the Zhengzhou factory, is working to resume full production at the plant as soon as possible, and has revised down its fourth quarter outlook. It said it would implement new measures at the plant to curb the spread of COVID-19, including a system that would restrict working employees’ travel to between their dormitory and factory area.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.