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iPhone shipments may face challenges amid COVID-related disruptions in China; Says Apple

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China’s manufacturing woes will directly affect Apple’s share price, with December revenue growth forecast to drop 8%.

Launched in September 2022. iPhone 14 the past few months have seen huge demand, but Apple believes that lower supplies could reduce supply. Apple is currently expecting lower shipments from China amid the zero spread policy of COVID-19.

The slow shipment pace could seriously affect Apple’s Christmas sales and cause the tech giant’s revenue growth to decline by more than 8%, directly impacting the stock price.

Tech businesses around the world are currently suffering from high levels of inflation and rising production costs, but Apple has been doing well due to massive demand for the iPhone 14. Now with production issues ahead, the company must brace for losses.

Apple is not the only company affected by China’s strict no-covid policy. Other companies such as Ester Lauder Companies Inc and Canada Goose Holdings have closed their stores in the country.

“Now the facility is operating at a significantly reduced capacity. We continue to see strong demand for the iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower shipments of the iPhone 14 Pro and iPhone 14 Pro Max than we previously expected,” Apple said when discussing its zero-spread COVID-19 policy.

The zero-spread policy of COVID-19 aims to lock down many areas of the country to prevent the spread of COVID-19, which has once again gained strength in the country. The country has kept many districts and areas under strict lockdown for months.

Reuters reports that with factories only supplying a limited number of iPhones, Apple’s production could drop as much as 30% in November. Apple’s main manufacturing facility in Central China, which employs about 200,000 people, has also faced severe consequences of the COVID policy.

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