iPhone Lovers' Fate Undecided As China Battled Rising Covid Cases, Lockdowns

iPhone Lovers' Fate Undecided As China Battled Rising Covid Cases, Lockdowns
  • The most oversized Apple Inc AAPL iPhone factory will continue to be subject to Covid restrictions, Bloomberg reported.
  • The authorities in China lifted a lockdown in the district where the plant is located but said some areas would likely serve as high risk.
  • The city of Zhengzhou ended a district-level lockdown order for the area around the airport. 
  • Also Read: 'Bye China': Apple Shifting Substantial iPhone Production To India Over 3 Years
  • Still, several areas within that district will remain classed as "high risk" under the city's Covid rules. They will continue to be subject to lockdown-like curbs. That includes restrictions on people leaving their homes.
  • The list of high-risk areas encompasses the Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group plant known as 'iPhone City.' The restriction implied a limited flow of goods and people into and out of Apple's main production base, potentially reducing iPhone shipments over the U.S. holidays
  • The city's ongoing restrictions have prompted Apple to warn that it would ship fewer premium devices than anticipated.
  • For now, the factory will continue to operate under a so-called closed loop to keep production going, said a spokesperson for Foxconn, Apple's key contract manufacturer in China.
  • While Zhengzhou's government aims to balance virus prevention and economic development, infections continue to rise in the city, making the easing of curbs a risky exercise. Zhengzhou reported 1,043 Covid cases for Tuesday, up from 733 a day earlier. 
  • Price Action: AAPL shares are down by 1.40% at $137.55 on the last check Wednesday.

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