Covid delays new iPhone deliveries

Apple has warned about the delay in the delivery of the new iPhone 14 Pro. Bad news for the apple firm as the holiday season approaches. Apple said its main iPhone production site is Zhengzhou (central China). currently operating at a significantly reduced capacity “, since the detection of a focus of positive cases in Covid-19.

Customers will have to wait longer to receive their new products “, the American group said in a press release on Sunday, November 6.

As we have done since the beginning of the pandemic, we prioritize the health and safety of workers in our supply chain. “, adds the brand to the apple.

Apple’s main subcontractor, Taiwan’s Foxconn group, has been facing a surge in Covid-19 cases since October at its giant site in Zhengzhou, the world’s largest iPhone factory.

Foxconn announced in a press release that it expects worse-than-expected results for the end of the year.

The group’s outlook for the fourth quarter was initially “cautiously optimistic”, but due to the pandemic affecting some of our facilities in Zhengzhou, the company will revise This perspective, the Taiwanese company said.

Foxconn is now working with authorities in a joint pandemic effort to restore production to full capacity as soon as possible. “, he added.

Sanitary bubble

The company did not disclose the extent of the impact of the curtailment on its financial results. It will release third-quarter results on Thursday and hold a conference call with investors to mark the occasion.

Foxconn also announced new measures for its employees on the WeChat social network, especially “ sanitary bubble between the dormitories and the factory.

The group informed that the workers who continue the work will be grouped in three dormitories.

Hundreds of workers, who were originally in prison, fled the factory in the disaster last week, frustrated by their living conditions.

According to Ivan Lam, an analyst at the specialist firm Counterpoint, other Foxconn production sites are temporarily required elsewhere in China, particularly in Guangdong province (in the south), the country’s manufacturing base.

However, increasing production takes time and overall performance will not be on target anyway, he notes.

According to the calculations of the specialized company “TrendForce”, “Apple” will produce 2-3 million fewer “iPhones” this quarter due to the recovery of the epidemic in the city of Zhengzhou.

All of this confirms Wall Street’s fears about Apple this quarter and will weigh on tech stocks this week. “Dan Ives, an analyst for judges at the American investment company Wedbush Securities.

iPhone City »

The Apple brand is highly dependent on China, where more than 90% of its products are manufactured. The country is also one of its most important markets.

Unlike its Silicon Valley neighbors, Apple has so far weathered the economic crisis well, although a strong dollar has weighed on earnings.

In July-September, sales of iPhone, the flagship product of the American group, increased by 9.7% during the year and reached 42.6 billion dollars.

During the holidays, the company and experts expected strong demand for the iPhone 14 and 14 Pro Max.

Foxconn is the largest private-sector employer in China, employing more than one million people in nearly 30 factories and research facilities across the country.

About 600 km from Beijing, the Zhengzhou area employs up to 300,000 people who live there year-round. iPhone City », a kind of city within a city.

China is following a tough strategy against Covid.

Despite recent rumors of a possible easing, officials on Saturday gave assurances that they would remain committed ” mercilessly to zero Covid policy.

The number of cases has been rising in recent weeks, with 5,643 new cases announced on Monday, a six-month high.

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