• Apple’s factory in China is “working at considerably reduced capacity” owing to Covid limitations.
• The tech giant reported significant demand for iPhone 14 Pro and iPhone Pro Max models. Apple expects lower shipments for certain models than “previously expected” due to the manufacturing issues.

China’s Covid limitations will “temporarily impair” Apple’s current iPhone shipments.

The business announced on Sunday that its assembly factory in Zhengzhou, central China, is “currently working at considerably reduced capacity” owing to Covid limitations.

The tech giant reported significant demand for iPhone 14 Pro and iPhone 14 Pro Max models. Apple expects lower shipments for certain models than “previously expected and customers will face lengthier wait times to get their new products,” it noted.

Since mid-October, Foxconn’s Zhengzhou site has been dealing with a Covid outbreak that has frightened its migrant workers.

The factory area was locked down for seven days last week.

The shutdown is straining Foxconn and Apple before the holiday shopping season and shows how China’s zero-Covid policy is harming international commerce.

As the world’s second-largest country doubles down on its zero-Covid policy, leading global and Chinese industries, from carmakers to tech giants, have suffered major disruptions.

Things may not improve soon. Despite rumors that the government could reduce pandemic restrictions and cut quarantine days, China’s state council reaffirmed its zero-Covid policy at a press conference on Saturday.

Apple (AAPL), the newest victim of China’s Covid sanctions, is faring better than other IT firms in the global economic slowdown. The company exceeded Wall Street sales and profits projections for the September quarter last month.

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