Want to purchase the newest iPhone 14 Pro or iPhone Pro Max right away? According to Apple, there will likely be greater delivery delays for its new items.
The tech behemoth said that its Chinese assembly plant is now working at a drastically reduced capacity.
On November 2, authorities shut down a neighbourhood where Foxconn has its largest iPhone factory for seven days.
The announcement from Apple comes as China reaffirms its commitment to zero COV.
According to a statement from Apple, which debuted its new iPhone line in September, “we are prioritising the health and safety of the employees in our supply chain, as we have done throughout the COVID-19 outbreak.”
“previously anticipated and customers will experience longer wait times to receive their new products.”
The announcement will likely disappoint investors who were hoping China would lift its Covid restrictions in the near future. Chinese stock markets rose sharply on Friday on the back of rumours of an end to Covid lockdowns.
Beijing’s unyielding approach to arresting the spread of the virus has come at a huge economic cost. But the country’s leader Xi Jinping, who has personally endorsed the policy, has given no indication that it will ease soon.
The latest figures show the world’s second-largest economy struggling to cope with prolonged challenges posed by persistent Covid restrictions, a property slump and the risk of a global recession.
China trade figures released on Monday showed its imports and exports contracted unexpectedly in October. It the first slump since May 2020. Outbound shipments for the month dropped 0.3% from a year earlier which is in stark contrast to a 5.7% gain in September. It was the worst performance since May 2020.
The country reported 5,643 new Covid infections on Sunday, its highest daily tally in six months. Zhengzhou, where the Foxconn factory is located, is the capital of Henan province in central China and is home to about 10 million people. It recorded 3,683 cases and 22 deaths on Monday.
Cases were also detected inside the factory, prompting a sudden shutdown that led to workers fleeing the premises. On Monday, the company started a recruitment drive at its Zhengzhou plant. It is offering workers who left the plant between 10 October and 5 November a one-time bonus of 500 yuan (US$69, GBP£60.88) if they return to work.
It is also offering a pay increase of 30 yuan an hour, according to a statement posted on its recruitment WeChat account.
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