Apple ‘not greatly affected’ by lockdowns in China

Image Source: Ken Kobayashi

The major assembler of Apple’s iPhones in China, Foxconn, has not had much difficulty dealing with the negative impacts caused by Covid lockdowns, Nikkei Asia said on Tuesday.

The recent outbreak of Covid cases in China has caused major cities to go into lockdown. Two months ago, Beijing and Shanghai were among the areas that were declared off-limits to the public.

It wasn’t long until Foxconn said it had to temporarily halt its operations in Shenzen, a manufacturing hub in China where it was producing several of Apple’s products like iPhones, iPads, and Macs, among others.

This development has been challenging for Apple, with the company announcing that it might suffer revenue losses that could reach $8 billion. “Covid is difficult to predict,” said CEO Tim Cook in a conference call after the company finished declaring its quarter two fiscal results.

Foxconn’s Chairman, Liu Young-way, said that the impact was not as much of a problem as they had anticipated. This led their team to have better outlooks for this quarter and next year due largely to what he revealed about how things are going at their company’s factory floors.

Although, this does not mean that Apple is not adversely affected by the Covid-19 lockdowns in China. The company said that it is still suffering from constraints. However, the report says that the current condition of the company is better than they had expected – and things are improving for the manufacturer.

“The overall lockdown impact on Foxconn is rather limited,” Young-way said, according to the report. “You can tell from our revenues in April, and May’s performance is also better than we estimated.”


Opinions expressed by US Reporter contributors are their own.

Kate Ross

I’m a digital marketer and web developer. As a technical content writer, I’m ever curious about innovation, technology and industry.

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