Apple Inc (AAPL.O) aims to maintain iPhone production relatively steady in 2022 at around 220 million devices. China’s COVID-19 limits global supply chain concerns and cooling demand continue to impact smartphone makers.Reuters, May 26
A COVID-19 epidemic in China has entirely paralyzed the country’s financial capital Shanghai, which is currently in its sixth week under lockdown. Meanwhile, Beijing has increased its quarantine operations.
Foxconn (2317.TW), the iPhone maker’s supplier has been able to keep its workers on-site in a “closed loop” approach to minimise the impact on production, but nationwide lockdowns have prompted many to issue demand-related warnings.
Apple also stated last month that any further lockdowns in China and Taiwan. Where many parts and iPhones are manufactured might create fresh supply and demand challenges in the current quarter.
Investors are also bracing for a reduction in consumer spending on computer products and services. The conflict in Ukraine drives up the cost of oil, food, and other basics.
Separately, Nikkei reported on Wednesday that Apple has instructed its suppliers to accelerate iPhone development after China’s COVID-19 lockdowns hindered the timeline for at least one of the new phones.
Apple did not immediately respond to a request for comment from Reuters.
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