Apple Inc (NASDAQ:AAPL) warned that deliveries of its iPhone 14 will be lower than expected as Covid-19 continues to impact operations in China.
China’s zero Covid policy has meant its Foxconn, Zhengzhou plant has been “operating at significantly reduced capacity”, the Silicon Valley firm said on Sunday.
In a statement, Apple said “restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone Pro Max assembly facility”.
As a result, it now expects lower shipments and longer wait times for customers, although it said it is working closely with suppliers to return to normal production.
Apple failed to provide an exact figure on much production would be hit at the plant, but a report last week by Reuters said production could drop by 30%.
Quoting sources familiar with the matter, Reuters reported that Apple is considering boosting production at another facility to make up for the shortfall.
Last month, Apple said revenue from iPhone sales fell short of Wall Street expectations, despite total earnings beating estimates.