William Gallagher
The latest COVID lockdown affecting iPhone manufacturer Foxconn has been lifted, following rioting by residents and workers.
China's severe coronavirus measures have seen a series of lockdowns that has battered Foxconn's expected earnings growth. It's meant such extensive delays to production of the iPhone 14 Pro that Apple issued a rare statement abut the situation.
CNN reports that Chinese authorities have now lifted the most recent lockdown, a further week-long one that affected Zhengzhou city. Reportedly, Chinese state media says that lockdown has been lifted in several districts of Zhengzhou, though it's not clear when the rest may follow.
Previously, employees required to stay at Foxconn through its "closed loop" protection against the coronavirus, have rioted in their hundreds. The rioting has more recently spread across the city, with residents calling for the lockdown to be lifted.
In a note to investors seen by AppleInsider, Wedbush estimates that Foxconn has been operating at between 20% and 30% of capacity. Describing it as "a horror show for Apple," and also a "China train wreck," Wedbush claims the lockdown has been "an absolute gut punch to Apple's supply chain."
According to Wedbush estimates, iPhone 14 Pro demand is running at three times the supply. The analysts believe 10 to 15 million sales of the iPhone 14 Pro will move to 2023 because of it.
Unless things change dramaticaly, very soon, it is already too late to order an iPhone 14 Pro online and get it in time for Christmas.
Christine McKee
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31 Comments
Go Chinese people!
Apple is not counting on it and it's increasing production line to 150% next year in India.
Apple better think long-term and move as much production out of China as possible. Too many risks, especially increasing authoritarianism. And I hope they don't make the same mistake elsewhere. India and Vietnam may not be as severe, but are still troublesome. As is their chief manufacturing partner Foxconn. Apple fans can't cheer moving manufacturing to India where there was "protests" at Foxconn for horrible conditions and pay disputes in the past.