February 2, 2023

Athens News

News in English from Greece

Financial Times: Apple business under growing threat

Due to a massive new wave of Covid-19 in China, Apple’s business is at risk – interruptions in iPhone production are possible.

As tells Financial Times, the US tech giant has faced chaos at its chief fitter Foxconn’s megafactory in China’s Zhengzhou, known as “iPhone City”, after another mass outbreak coronavirus that began in October.

Due to the multitude cases workers waiting time for their new iPhone buyer in the US is about a month. With the Chinese government lifting its zero fight policy against COVID-19, a long-term risk is brewing – a potential shortage of workers in component factories or assembly plants across the country.

Apple is currently running a shortage of 5 million to 15 million iPhones. The situation is complicated by the fact that 1/5 of Apple’s income comes from sales in China, and more than 90% of iPhones are assembled there. The company’s net profit is expected to fall by more than 8% this quarter, according to banks united by Visible Alpha.

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