Apple expects iPhone 14 shipments to be hit by China's COVID curbs

Women wearing face masks walk by people use their smartphones to scan their health check QR codes before entering an Apple Store in Beijing, Monday, Nov. 7, 2022. Apple Inc. is warning customers they'll have to wait longer to get its latest iPhone models after anti-virus restrictions were imposed on a contractor's factory in central China. (AP Photo/Andy Wong)

Apple has said that shipments of its latest lineup of iPhones will be "temporarily impacted" by COVID-19 restrictions in China.

In a statement on Sunday, the company said that its assembly facility located in the central Chinese city of Zhengzhou is "currently operating at significantly reduced capacity," due to COVID-19 curbs.

"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models," the tech giant said. However, the company expects lower shipments for those models than "previously anticipated and customers will experience longer wait times to receive their new products,"Apple added.

Run by Foxconn, one of Apple's largest suppliers, the facility in Zhengzhou has been grappling since mid-October with a COVID-19 outbreak that has caused panic among its migrant workers. Last week, authorities imposed a seven-day lockdown of the area that houses the factory.

The lockdown is putting tremendous strain on Foxconn and Apple just before the key holiday shopping season begins and highlights how China's stringent zero-COVID-19 policy is hurting international business.

In recent weeks, top global and Chinese companies – from carmakers to tech giants – have experienced huge disruptions to their businesses as the world's second-largest economy doubles down on its zero-COVID-19 approach.

Things may not improve any time soon. China's State Council reiterated its unwavering commitment to the nation's zero-COVID-19 policy during a press conference on Saturday, despite rumours that the government might loosen pandemic restrictions and cut quarantine days.

While Apple has become the latest victim of China's COVID-19 curbs, it is weathering the global economic downturn better than fellow tech giants. Last month, the company beat Wall Street analysts' sales and income expectations for the quarter ended in September.