Apple warned investors and customers on Sunday that it expects to ship fewer iPhone 14 Pro and iPhone 14 Pro Max units as the world’s most valuable technology company struggles with China’s ongoing Covid-19 lockdown.
The company said it is still seeing strong demand for the pro models of the new iPhone 14 lineup, but the lockdown restriction has caused it to lower its previous shipment estimates.
The warning comes at an important time for Apple, as it, like many others, prepares for the holiday shopping season.
“The facility [located in Zhengzhou, China] is currently operating at significantly reduced capacity.
As we have done throughout the COVID-19 pandemic, we are prioritizing the health and safety of the workers in our supply chain,” the company said in a blog post.
China ordered a seven-day closure of the area surrounding Foxconn’s flagship plant in Zhengzhou earlier this month, building on a similar restriction imposed on the region last month.
The assembly line, known as iPhone City, is Apple’s largest manufacturing site and employs approximately 200,000 people.
According to analysts at research firm Counterpoint, the Foxconn-owned plant produces four out of every five current-generation iPhone handsets.
Separately, Foxconn said on Sunday that it would “revise down” its own fourth-quarter forecast and that it was working with authorities to “resume production to full capacity as soon as possible.”
For more than two years, Apple, like many other companies, has been attempting to maintain product shipments despite a global supply chain disruption.
The disclosure about the shipments on Sunday is unusual for Apple, which has mostly made such disclosures during its quarterly earnings calls.
The update, on the other hand, is not surprising. In a recent earnings call, Apple CEO Tim Cook stated that supply for the iPhone 14 Pro and iPhone 14 Pro Max has been “constrained” since launch.
“We’re still constrained today, so we’re working very hard to meet demand,” he said on the call.
On Sunday, the company stated that it was “working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker.”