China's COVID-19 restrictions slowing iPhone 14 production, Apple says
China's 'zero-COVID' policy has hampered supply chains worldwide
Investors should cut back on Apple: Dick Pfister
AlphaCore Wealth Management CEO Dick Pfister explains why he's souring on Apple on 'The Claman Countdown.'
Apple warned on Sunday that COVID-19 restrictions are hampering production at the main plant manufacturing the new iPhone 14 Pro in Zhengzhou, China.
"The facility is currently operating at significantly reduced capacity," Apple said in a statement.
"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, 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 iPhone 14 was unveiled in September. (Apple / Fox News)
China has maintained its "zero-COVID" policy, but the country reported the highest number of new cases in six months on Sunday.
SHANGHAI DISNEYLAND VISITORS REPORTEDLY LOCKED IN PARK FOR HOURS OVER A SINGLE COVID CASE
Foxconn employs about 200,000 people at the Zhengzhou factory that makes a majority of Apple's iPhones globally.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 217.90 | -5.95 | -2.66% |
China ordered an industrial park that houses that iPhone factory to enter a seven-day lockdown earlier this week, barring residents from going out and restricting travel on roads.
FILE PHOTO: A man holds an iPhone 14 as Apple Inc's new models go on sale at an Apple store in Beijing, China, September 16, 2022. (REUTERS/Thomas Peter/File Photo / Reuters Photos)
Foxconn said in a statement on Sunday that it will "revise down" its outlook for the fourth quarter due to the COVID-19 restrictions.
"Foxconn is now working with the government in concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible," Foxconn said in a statement.
CLICK HERE TO GET THE FOX BUSINESS APP
Apple unveiled the 6.1-inch iPhone 14 Pro and a 6.7-inch iPhone 14 Pro Max in September, both of which are powered by a 5-core GPU and an A16 Bionic chip.
Reuters contributed to this report.