Home News Company in the news

Apple cuts outlook for iPhone shipments, cites China lockdowns

Bloomberg11/7/2022 07:26 AM GMT+08  • 2 min read
Apple cuts outlook for iPhone shipments, cites China lockdowns
Ongoing lockdown in China is affecting Apple's outlook.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Apple said it expects lower shipments of its newest iPhones than previously expected after China lockdowns affected operations at a supplier’s factory.

The company continues to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models but the lockdowns mean “customers will experience longer wait times to receive their new products,” Apple said in a statement on Nov 6.

The abrupt move by the Chinese government on Nov 2 to lock down the plant operated by Hon Hai Precision Industry until Nov 9 is expected to further disrupt a factory already grappling with an on-site coronavirus outbreak, worker exodus and enforced quarantine.

While local officials said production at the plant basically remains normal, Hon Hai said in a separate statement that it’s lowering its fourth-quarter outlook to factor in the lockdown.

The local government has ordered people and vehicles off the streets except for medical or other essential reasons, a prohibition that threatens to cut off the flow of additional workers and components needed to rev up production ahead of the holiday-season crush.

The measures may further compound the headaches Foxconn and Apple are already facing as iPhones’ sales slow in China.

See also: Administrators to complete Sun Cable sale by May

Meanwhile, Foxconn’s plant continues to operate within a “closed loop,” or a self-contained bubble that limits contact with the outside world. That is keeping some production going.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.