Apple Inc warned investors and customers on Sunday that it expects fewer iPhone 14 Pro and iPhone 14 Pro Max shipments as the world’s most valuable tech company grapples with China’s ongoing Covid-19 lockdown.
The company said it continues to see strong demand for the product Professional models of the new iPhone 14 series, but lockdown restrictions have prompted it to slash previous shipment estimates. The warning comes at a critical time for Apple, like many others, as it prepares for the holiday shopping season.
“facility [located in Zhengzhou, China] Currently operating at a significantly reduced capacity.As we have done throughout the COVID-19 pandemic, we are prioritizing the health and safety of workers in our supply chain,” the company said in a statement blog post.
Like many companies, Apple has been trying to maintain its product shipments for more than two years amid global supply chain disruptions. Disclosures around shipments on Sunday were rare for Apple, which has largely opted to make such disclosures on its quarterly earnings call.
However, the update is no surprise. Apple CEO Tim Cook said on its most recent earnings call last month that the supply of the iPhone 14 Pro and iPhone 14 Pro Max has been “constrained” since launch. “We continue to be limited today, so we’re trying to meet demand,” he said on the conference call.
The company said on Sunday it was “working closely with our suppliers to restore normal production levels while ensuring the health and safety of every worker.”
China earlier this month ordered a seven-day lockdown of the area around Foxconn’s flagship factory in Zhengzhou, doubling down on similar restrictions imposed on the area last month. The assembly line makes four out of five current-generation iPhones, according to Bloomberg estimates.