COVID Flare-Ups in China Hurting iPhone Production
On the precipice of the year-end holiday season — traditionally the busiest time of the year for electronics makers — Apple has announced it expects fewer iPhone 14 Pro and iPhone Pro Max shipments than originally predicted.
Facts
- On the precipice of the year-end holiday season — traditionally the busiest time of the year for electronics makers — Apple has announced it expects fewer iPhone 14 Pro and iPhone Pro Max shipments than originally predicted. This is due to temporary COVID restrictions at its assembly plant in Zhengzhou, China.
- China’s COVID lockdowns in Zhengzhou have affected production at the Foxconn plant, which employs around 200K people and produces the majority of new phones for Apple.
- In a statement explaining that the plant is running short of full capacity despite strong demand, Apple said, “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.”
- The Zhengzhou COVID lockdown, in addition to other PRC COVID policies and outbreaks, has led many employees to flee the facility— leaving it short of employees. China’s “zero-COVID” policy forces the factory to operate as a “closed loop,” meaning workers are kept sequestered from the outside world.
- China’s National Health Commission has said through a spokesperson that the zero-COVID policy won’t be relaxed in the near future.
Sources: Guardian, NBC, and Verge.
Narratives
- Anti-China narrative, as provided by CNN. The slowdown at Foxconn and the iPhone delivery delays are the least of China’s economic problems. Exports had been a bright spot in the country’s struggling economy, however, exports and imports both were down in October and the decrease in global demand doesn’t bode well for the near future. China’s going to have to rethink some of its policies, COVID-related and otherwise.
- Pro-China narrative, as provided by Global Times. Issues at Foxconn are merely a blip on the radar that will delay some from getting their new iPhone in time for the holiday — not a sign of any long-term issues for the PRC economy. Zhengzhou will soon have its COVID issues under control and Foxconn is offering financial incentives for new and returning workers who will have the factory back running full tilt in no time.
