Sources in China say Apple has reduced its orders from suppliers for almost all of its products, and the news has seen AAPL shares drop.
Apple shares had risen on the news that production in Foxconn's major iPhone plant in Zhengzhou is back to 90% capacity. However, a new report about Apple cutting orders has seen the company fall 3.55% on NASDAQ.
According to Nikkei Asia, the supply chain in China was struggling as the local authorities relaxed their severe COVID lockdowns and allowed factories to reopen. Then came the reduction in orders.
"Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December," a source said to be an Apple supplier manager, told the publication, "partly because the demand is not that strong."
"The supply chain in China is still trying to cope with the latest abrupt policy turns," continued the source, "which brought a shortage of laborers because of the sharp COVID surges."
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