lockdowns-in-china-mean-no-more-iphones?

 

Recent covid-19 lockdowns in China forced the world’s biggest iPhone plant to shut down. Thus, Apple has advised phone buyers to expect delays in getting their ordered products.

Manned and operated by Foxconn, the factory, is operating at “significantly reduced capacity,” Apple officers said. Officials locked down the district where the factory is located beginning November 2.

The recent lockdown is the result of China’s continued adherence to its “zero- Covid-policy.”

“As we have done throughout the Covid-19 pandemic, we are prioritizing the health and safety of the workers in our supply chain,” said a statement from Apple, which launched its new iPhone line in September.

“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 and customers will experience longer wait times to receive their new products,” Apple officers added.

Foxconn, formally known as Hon Hai Precision Industry, accounts for 70% of iPhone shipments globally.

Apple is one of the most dominant and identifiable brands in the world, bringing the rise of the smartphone with the iPhone. Valued at more than $2 trillion in 2021, it is also the world’s most valuable technology company.

The lockdown is placing a massive burden on Foxconn and Apple just before the major holiday shopping season begins. It also stresses how China’s stringent zero-Covid policy is damaging global business.

Around the world, there are over 1.2 billion iPhone users as of 2022 and Japan ranks the highest in the average percentage of iPhone users.

The second quarter of 2022 showed that Apple’s iPhone remains the best-selling smartphone in China, and homegrown competitor Vivo has outdone Samsung for second place.

Apple publicized that it is bringing together its leading iPhone 14 in India in an effort to move production away from China. Therefore, there will still be iPhones in the market despite the rush of lockdowns.

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