TAIPEI: Apple Inc AAPL.O expects lower shipments of high-end iPhone 14 models than previously anticipated following a significant production cut at a virus-blighted plant in China, dampening its sales outlook for the year-end holiday season.
Solid demand for the new iPhones has helped Apple remain a rare bright spot in the global tech sector that has been battered by spending cutbacks due to surging inflation and interest rates.
But the Cupertino, California-based company has now fallen victim to China's rigorous zero-COVID-19 policy, which has already prompted many global firms including Ester Lauder Companies Inc EL.N and Canada Goose Holdings Inc GOOS.TO, GOOS.N to shut their stores in China and cut full-year forecasts.
"The facility is currently operating at significantly reduced capacity," Apple said in a statement on Sunday without elaborating how much production has been impacted.
"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," it said.
Reuters last month reported that production of Apple's iPhones could slump by as much as 30% at one of the world's biggest factories in November due to tightening COVID-19 curbs in China.
Its main Zhengzhou plant in central China, which employs about 200,000 people, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site.
Market research firm TrendForce said last week it has cut its iPhone shipments forecast for the December quarter by 2-3 million units, from 80 million previously, due to the troubles at the Zhengzhou plant, adding that its investigation of the situation found that the factory's capacity utilisation rates were now around 70%.
Apple, which launched sales of the new iPhones in September, said customers will experience longer wait times to receive their new products.
The world's most valuable company with a market capitalisation of $2.2 trillion forecast in October its revenue growth would fall below 8% in the December quarter.
"Anything that affects Apple's production obviously affects their share price," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"But this is part of a much deeper story - the uncertainty surrounding the future of the Chinese economy... These headlines are part of the ongoing saga as to whether there is any truth to the consistent rumours that authorities are discussing whether some of the measures will be lifted in the first quarter."
China on Sunday reported its highest number of new COVID-19 infections in six months, a day after health officials said they were sticking with strict coronavirus curbs, likely disappointing recent investor hopes for an easing.
FOXCONN CUTS OUTLOOK
Taiwan's Foxconn 2317.TW, the operator of the Zhengzhou factory, said on Monday it was working to resume full production at the plant as soon as possible, and revised down its fourth quarter outlook.
It said it would implement new measures at the plant to curb the spread of COVID-19, including a system that would restrict working employees' travel to between their dormitory and factory area.
Shares in Foxconn fell 0.5% in early trade on Monday, lagging a 1.2% rise in the broader index .TWII.
China ordered an industrial park that houses the iPhone factory to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple supplier as it scrambles to quell worker discontent at the base.
The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect, including barring all residents from going out and only allowing approved vehicles on roads within that area.
Foxconn, the world's largest contract electronics maker, said in a statement that the provincial government in Henan, where Zhengzhou is located, "has made it clear that it will, as always, fully support Foxconn in Henan".
"Foxconn is now working with the government in concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible."
Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple's biggest iPhone maker, accounting for 70% of iPhone shipments globally. It has other smaller production sites in India and southern China.
Having previously guided for "cautious optimism" in the fourth quarter, Foxconn said it will "revise down" its outlook given events in Zhengzhou.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply cellphones, tablets and other electronics for the year-end holiday period in Western markets.
Foxconn releases third-quarter earnings on Nov. 10.
Reuters
Mon Nov 07 2022
ignage is seen at the Apple Fifth Avenue store for the release of the Apple iPhone 14 range in Manhattan, New York City, U.S., September 16, 2022. REUTERS/Andrew Kelly/File Photo
Pelajar tahfiz perlu teroka bidang teknologi
Kira-kira 200,000 pelajar tahfiz di negara ini, perlu dipastikan untuk mempunyai kemampuan dan peluang menjadi tenaga penggerak kepada umat Islam Malaysia dalam meneroka bidang yang dahulu dilihat sebagai asing., tegas Perdana Menteri Datuk Seri Anwar Ibrahim.
Perpaduan rakyat prasyarat ekonomi mampan
Tidak semua negara Islam mempunyai ruang dan kesempatan untuk terus aman dan damai, dan mempunyai peluang untuk menikmati ekonomi yang kukuh dan berkembang seperti Malaysia, tegas Perdana Menteri Datuk Seri Anwar Ibrahim.
Beliau berkata, rakyat Malaysia perlu mempunyai tekad untuk memahami maksud dan keperluan perpaduan di kalangan mereka, serta kekuatan dalaman yang seterusnya dapat dijadikan tonggak untuk negara membuat langkah seterusnya.
Beliau berkata, rakyat Malaysia perlu mempunyai tekad untuk memahami maksud dan keperluan perpaduan di kalangan mereka, serta kekuatan dalaman yang seterusnya dapat dijadikan tonggak untuk negara membuat langkah seterusnya.
Tidak perlu tergesa-gesa tukar ke lesen B - JPJ
Pemegang Lesen Memandu Malaysia (LMM) Kelas B2 dan B1 tidak perlu tergesa-gesa mendaftar Program Khas Peralihan LLM Kelas B2/B1 Kepada LMM Kelas B kerana tiada had masa ditetapkan untuk permohonan.
KPWKM teruskan lapan inisiatif bantu warga emas
Kementerian Pembangunan Wanita, Keluarga dan Masyarakat (KPWKM) akan terus menggerakkan lapan inisiatif utama dalam memenuhi keperluan jagaan dan sistem sokongan terhadap warga emas.
Warga emas maut ditikam anak kandung yang berhalusinasi
Seorang pesara guru maut ditikam anak kandungnya sendiri di sebuah rumah dekat Kampung Senaling, di sini, petang Sabtu.
Menurut Ketua Polis Daerah Kuala Pilah, Superintendan Amran Mohd Ghani, siasatan awal mendapati warga emas berusia 65 tahun itu cuba memujuk anak lelakinya yang juga pemegang kad orang kurang upaya (OKU) mental yang dikatakan mahu membunuh diri.
Menurut Ketua Polis Daerah Kuala Pilah, Superintendan Amran Mohd Ghani, siasatan awal mendapati warga emas berusia 65 tahun itu cuba memujuk anak lelakinya yang juga pemegang kad orang kurang upaya (OKU) mental yang dikatakan mahu membunuh diri.
Berita tempatan pilihan sepanjang hari ini
Berikut adalah berita yang paling menjadi tumpuan sepanjang Sabtu, 5 Oktober 2024.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
Hezbollah lancar serangan peluru berpandu ke atas kompleks industri ketenteraan di utara Israel
Pergerakan Hezbollah di Lubnan berkata mereka telah melancarkan serangan peluru berpandu ke atas kemudahan ATA Defence Industries.
Tiada kaitan dengan pelantikan CEO MDEC, Anuar Fariz bukan adik saya - Fahmi
Menteri Komunikasi Fahmi Fadzil menyangkal dakwaan Ketua Pegawai Eksekutif (CEO) baharu Perbadanan Ekonomi Digital Malaysia (MDEC) Anuar Fariz Fadzil merupakan adiknya.
Israel lakukan persiapan untuk serang Iran - Laporan
Tentera Israel sedang bersiap untuk "tindakan balas besar-besaran dan ekstrem" terhadap Iran.
HomePod dengan skrin bakal dilancar tahun depan, dengan integrasi Apple Intelligence
HomePod baharu akan hadir dengan integrasi Apple Intelligence, membawa sokongan kecerdasan buatan kepada pelbagai produk Apple.
Apple iPhone 16 kini boleh dipratempah, dengan pilihan ambil terus di Apple Store TRX
Pengguna tempatan boleh membuat pembelian dan menerimanya bermula 20 September 2024.
Apple diarah bayar cukai €13 bilion kepada Ireland
APPLE kini perlu membayar cukai berjumlah "13 bilion (RM62 bilion) kepada Ireland.
Malaysia negara terawal terima siri iPhone 16, iPhone 16 Pro – mulai 20 Sept 2024
Para pengguna tempatan boleh melakukan tempahan bermula 8 malam 13 September 2024 dan mula menerimanya bermula 20 September 2024.
Apple dilapor akan beralih sepenuhnya ke skrin OLED untuk semua iPhone bermula 2025
Penggunaan panel OLED dilihat akan menawarkan paparan warna yang lebih cantik, selain sesuai untuk paparan video berdefinisi tinggi.
Apple Mac Mini baharu dijangka buang sambungan USB-A
Ini mungkin selari dengan perubahan yang telah dilakukan pada komputer riba MacBook, yang tidak lagi menyertakan sambungan USB-A, dan memfokuskan sepenuhnya pada USB-C.
Apple dilapor bangunkan Magic Keyboard lebih murah untuk iPad
Apple sedang menguji Magic Keyboard pada harga lebih rendah, menyasarkan pengguna iPad asas dan juga iPad Air.
Apple, NVIDIA dilapor ingin melabur dalam OpenAI
Ini akan membuatkan pelbagai syarikat terkemuka teknologi kini bersaing dalam mendapatkan pegangan masing-masing pada OpenAI.
Apple pecat 100 pekerja dalam jabatan perkhidmatan digital, jejas beberapa aplikasi
Pemecatan turut melibatkan peranan kejuruteraan dan pasukan perkhidmatan lain termasuk yang mengendalikan Apple News.
Senarai lagu Apple Music kini boleh dipindahkan ke YouTube Music
Hanya senarai lagu yang dihasilkan sendiri oleh pengguna boleh dipindahkan ke YouTube Music.