Apple confirms cut in Production of iPhone 14 Pro and 14 Pro Max
In an official statement, Apple confirmed that restrictions imposed in China due to a new wave of COVID-19 have led to a significant cut in production at Hon Hai Precision Industry’s Zhengzhou Factory, also known as Foxconn, one of the main places where iPhones are assembled.
The restrictions imposed due to the pandemic had a temporary impact on the main assembly plant for the iPhone 14 Pro and iPhone 14 Pro Max located in Zhengzhou, China. The factory is currently in operation, but with significantly reduced capacity. As we have always done during the COVID-19 pandemic, we are prioritizing the health and safety of workers in our supply chain. We continue to have strong demand for the iPhone 14 Pro and 14 Pro Max. However, we now expect shorter-than-expected shipments from these models and customers will have to wait longer to receive their new products.
According to rumors, the blockages at Foxconn’s Chinese factory – one of the largest in the world – could result in a cut in iPhone production by about 30%. Apple, which posted better-than-expected results in the last fiscal quarter, however, had already warned investors of a possible slowdown during the most important quarter of the year, which includes the holiday season. Despite everything, analysts still estimate sales at around $128 billion, an all-time high.
About 200,000 people work at the Zhengzhou factory, located in central China. In recent days, the strict containment measures implemented, including the forced quarantine at the company to keep part of the production active, led to a series of protests and attempts to escape by employees that the public order services tried to contain even with force.
Foxconn said it has the full support of the provincial government it is working with to try to recover full production capacity as quickly as possible. Having previously expressed “cautious optimism” in its fourth-quarter earnings guide, Foxconn nevertheless confirmed that it will “review downwards” its forecasts in light of what is happening in Zhengzhou.
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