Apple iPhone assembly plant under new Covid lockdown in China

Apple iPhone assembly plant under new Covid lockdown in China

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Apple Inc’s supplier Foxconn said it beat its April-June net profit expectations.

Photo by Lam Yik Fei/Bloomberg via Getty Images

An industrial park in China that houses the world’s largest assembly plant for AppleiPhones have been ordered to end a seven-day Covid lockdown, according to a Reuters report.

The lockdown comes as Apple struggles to meet demand for some of its new iPhones, which launched in September. Apple CEO Tim Cook, speaking to CNBC on Thursday about the company’s fiscal fourth quarter results, said the company’s high-end iPhone 14 Pro phones remain limited in supply.

Zhengzhou Airport Economic Zone, located in central China’s Henan Province, is imposing “silent management measures”, the report said. Residents are not allowed out and only approved vehicles are allowed on the road until restrictions are eased on November 9.

Apple shares were down about 1% in Wednesday morning trading.

The Zhengzhou factory is owned by Foxconn, Apple’s largest iPhone supplier. Last week, Foxconn said its factory in Zhengzhou had been hit by a small Covid outbreak.

A spokesperson for the Taiwanese company, officially known as Hon Hai Technology Group, told CNBC that operations and production at its Zhengzhou plant are “relatively stable, health and safety measures for employees being maintained”.

An Apple representative did not immediately respond to requests for comment.

Zhengzhou has been battling a new wave of Covid. The city has locked down some neighborhoods as China continues its zero-Covid policy, using testing and lockdowns to try to fight the virus.

The lockdown marks a tightening of measures in the region after Zhengzhou unexpectedly lifted some restrictions on Tuesday, the report said. The city reported 358 Covid cases on Tuesday, down from 95 on Monday.

Earlier this month, Foxconn introduced virus prevention measures such as requiring employees to take a Covid test within 24 hours of entering Zhengzhou premises and urged them to get vaccinate.

Apple still relies heavily on China for the majority of its iPhone production, but the tech giant has diversified its supply chain.

The company announced in September that it was assembling its flagship iPhone 14 in India with the aim of moving some production out of China, for example.

CNBC’s Arjun Kharpal contributed to this report.

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