Apple Faces More Threats Due To Covid Wave In China

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Apple Faces More Threats Due To Covid Wave In China

Apple Faces More Threats Due to COVID Wave In China

China is battling against a major COVID outbreak in various big cities. As a result of this pandemic, Apple's business has become under renewed threat as most of the iPhone production happens there.

Zhengzhou, which is also known as the City of iPhones, went through a major COVID-19 outbreak in October and still continues to do so. As a result of this, Foxconn, which is the main assembler of iPhones, had to close production.

Foxconn solved the issues by moving a part of the production toward other factories in the country. Similarly, Apple has been working with various suppliers to cut back long wait times.

For now, there is a waiting period of 23 days for an average customer to buy the latest iPhones in the USA. This was revealed by UBS (a famous bank from Switzerland).

For now, the Chinese government has backtracked on its zero-COVID policy. Although this removed a lot of the restrictions faced by the public and businesses, it has opened doors to another problem... COVID is on the rise across China, which is leading to shortages of workers at the assembly factories.

Overall, operations will be impacted in a lot of places such as factories, warehouses, transportation, logistics, and even distribution. In short, the entire supply chain is at risk of disruption and it could deal a serious blow to Apple's business.

That's why Apple issued a warning on November 6 about possible disruptions beforehand. This statement was followed by another report which suggested that sales growth will be much slower during the holiday period. On average, a sales growth below 8% was highly expected by the company.

As for 2023, the models show that around 1 million people from China could die from the COVID outbreak. If this happens, it could mean more trouble for Apple's business in China as well as other companies that rely on the country.

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