Apple In For Shortfall Of IPhone Pro Units Due To China Protest?
Apple Inc. may face production shortfall of as many as 6 million iPhone Pro units this year due to ongoing protests at its major China plant, Bloomberg reported citing a person familiar with assembly operations.
Following the news, Apple shares were losing around 2.2 percent in pre-market activity on the Nasdaq.
The tech major’s key manufacturing hub of Zhengzhou has been affected severely by violent protests against Covid restrictions. iPhone Pro, Apple’s most in-demand phones, are being produced at the facility, which is operated by Taiwanese company Foxconn Technology Group.
In China, increasing lockdowns due to record-high domestic daily Covid-19 cases, have fueled frustration among the population. There were violent clashes in “iPhone City” Zhengzhou, which plays a key role in the technology supply chain.
As per the report, estimate of lost production could change if lockdowns continue, and it also depends on when Foxconn can get workers back to production lines after protests.
Last week, Reuters had reported that Apple’s iPhone production at the plant may fall at least 30 percent for November due to the unrest.
Earlier, Apple had warned that the shipments of iPhone 14 would be lower than expected due to the China Covid issues.
In October, certain employees had fled the iPhone production campus after food shortages. Workers, who replaced them, are now protesting over unpaid bonuses that were promised to them for continuing production at the plant despite the spread of COVID-19.
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