Tech troubles: Apple iPhone 14 shipments hit by Chinese Covid-19 curbs
There will be fewer iPhone 14’s under Christmas trees this year after Apple forecast smaller shipments of its latest offering.
Apple supplier Foxconn issued a significant production cut as it battled against a Covid-19 outbreak at one of its large facilities in China in mid-October and tough local pandemic restrictions.
The Zhengzhou plant – one of the world’s biggest – has announced a fresh recruitment drive today, in a bid to lure back staff who had left in recent weeks under reportedly poor working conditions with a one-off bonus of 500 yuan ($69.28) should they return.
Apple and Foxconn previously had not responded to questions about how iPhone production might be affected by Covid-19 restrictions in China, despite the Zhengzhou plant being locked down.
Reuters last month reported that iPhone output could tumble by a third in November at Foxconn’s Zhengzhou factory due to Covid-19 restrictions.
In a statement on Sunday, Apple said that while it expects demand to be strong for its iPhone 14 – despite a global economic downturn weighing on consumer habits – shipments will be lower than previously anticipated.
Foxconn has also downgraded its outlook for this quarter over the lockdown.
“Foxconn is now working with the government in a concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible,” the company said on Monday.