Consumer electronics giant Apple (AAPL) said in a statement that it has temporarily reduced
production of its newest iPhone 14 smartphone due to ongoing COVID-19 restrictions in China.
An Apple factory in China that is run by Foxconn is currently operating at “significantly reduced
capacity,” Apple said in its written statement.
The company warned that it would ship fewer units and that customers would experience longer
wait times when ordering the iPhone 14.
Apple’s warning raises the possibility that it may sell fewer iPhones during the upcoming holiday
sales period, which is typically the busiest time of year for the company.
Apple added that it continues to see strong demand for higher-priced iPhone 14 models that
cost $999 U.S. to $1,099 U.S. each.
In recent weeks, China has ordered lockdowns in Zhengzhou, where Apple makes most of its
iPhones.
China continues to enforce a “zero-COVID” policy that requires facilities such as the iPhone
plant in Zhengzhou to operate as “closed loops,” where workers isolate in dorms and work in
factories that are separated from the outside world.
It is currently taking an average of 31 days to receive an iPhone 14 Pro if ordered from Apple’s
website, longer than the average two days to get earlier iPhone models, according to an
analysis by bank JPMorgan Chase (JPM).
Apple’s stock is down 24% on the year and trading at $138.38 U.S. per share.