The production of Apple’s iPhone 14 is under threat as China has imposed a seven-day lockdown of the area around Foxconn Technology Group, the company responsible for producing 70% of iPhone shipments globally.
The lockdown, according to Bloomberg, comes during a critical period for Apple, which launched the iPhone 14 during a historically low point in global demand for electronics.
The business has abandoned plans to raise manufacturing of its new iPhones this year, despite doing better than phone manufacturers since the anticipated rise in demand did not occur.
According to Counterpoint Senior Analyst Ivan Lam, Foxconn’s Zhengzhou facility produces more than 85% of the iPhone 14 Pro’s capacity and is responsible for 80% of the iPhone 14 series production.
Any disturbance there, according to experts, may tangle Apple’s carefully planned supply chain.
This is due to the fact that tens of thousands of components are delivered from Europe to Asia, assembled by hand into gadgets, and then transported to the rest of the globe through Zhengzhou.
Currently, vehicles are not allowed to operate except for those carrying necessities.
Although the lockdown will last until November 9, Foxconn has sought to mitigate the potential disruption by raising wages and arranging for backup from its other Chinese plants should assembly lines stall in Zhengzhou.