Apple expects fewer shipments of iPhone 14 models than first indicated due to significant relief in production at shuttered factories in China, lowering its sales expectations for the key holiday season.
Demand for high-end iPhones built at Foxconn’s Zhengzhou factory in China has helped Apple gain a strong foothold in an industry plagued by cuts in customer spending in the face of emerging interest rates and inflation.
However, Apple has recently been hit by China’s COVID-19 policy, prompting foreign organizations such as Canada Goose Holdings and Estee Lauder Companies to close local retail outlets and reduce projections.
Foxconn’s key factory in Zhengzhou is now operating at a particularly reduced capacity, according to Apple. He did not specify the precise limits. While the iPhone 14 Pro and iPhone 14 Pro Max are in high demand, Apple plans to ship fewer iPhone 14 Pro. and iPhone 14 Pro Max than originally planned.
According to Reuters, COVID-19 restrictions may lead to a drop in iPhone production at Foxconn’s Zhengzhou factory of up to 30% in November. 19 policies, with many employees leaving the site.
Due to factory issues, market analyst TrendForce lowered its iPhone shipment forecast for October-December from 80 million to 3 million devices, noting that its survey showed capacity usage rates of around 70 percent. Customers can expect long wait times, according to Apple, which began promoting its iPhone 14 lineup in September.
China on Monday recorded the highest number of new COVID-19 cases in six months, causing widespread disruption in the world’s second-largest economy. .
Tip: Apple launches iPhone 14, Pro, Pro Max and Plus
Techzine focuses on IT professionals and business resolution managers through the release of the latest IT news and backstories. perceive products and services.