As the situation in China continues to worsen due to COVID-19 lockdowns. civil obedience erupted due to people’s frustrations about the zero-COVID policy. Because of this, Apple stands to lose around 6 million units of iPhone production in China.
Problems at Foxconn iPhone Plant Worsening
Bloomberg reported that the turmoil at Apple’s key manufacturing hub in Zhengzhou would likely result in a production shortfall of around 6 million iPhone Pro and iPhone Pro Max units this year. Apple’s exclusive manufacturing partner for the premium iPhones has been affected by the worsening COVID-19 lockdowns in China. The report said although the production situation remains fluid, it could change later due to several reasons. But this did not stop Apple from lowering its iPhone production target to about 87 million devices. Previously, the company estimated to produce 90 million units of iPhone this year.
First, Foxconn must quickly get its workers back to the assembly lines. Last week, workers staged a violent protest against COVID-19 restrictions. This came alongside worsening conditions outside of the Foxconn plant. Reports said that protest actions were held in Shanghai due to people’s frustrations over restrictive COVID-19 measures and the government’s zero-COVID policy. An unprecedented wave of civil disobedience erupted, voicing frustrations over President Xi’s zero-COVID policy, Reuters reported.
Apple’s iPhone Production Dilemma Continues
Unfortunately for Apple, Foxconn is the key manufacturer of its more in-demand iPhone Pro and iPhone Pro Max. With the onset of the holiday season when consumers often upgrade their iPhones, Apple will most likely experience supply constraints. Earlier this month, a Morgan Stanley analyst predicted a production shortfall of at least 6 million iPhones this year due to the supply chain disruption in China.
Hopefully, Apple’s various strategies to shift iPhone production away from China gains ground as soon as possible. The ongoing supply chain problem would definitely hurt its iPhone 14 sales if supply does not improve.