Customers walk past the digital display of the new green Apple iPhone 13 pro inside the Apple Store on 5th Avenue in Manhattan, New York, March 18, 2022.
Facebook Logo Facebook Sign up for Facebook to connect with Mike Segar Reuters
Foxconn, a major assembler of Apple’s iPhones, said the impact of China’s Covid lockdown on its operations was not as bad as expected, Nikkei Asia reported on Tuesday.
At the end of March, China ordered a series of closures in several major cities after the country saw an increase in the number of coronavirus infections. Not long after, Foxconn said it would suspend operations in Shenzhen, a Chinese manufacturing hub where the company makes some iPhones, iPads and Macs.
Last month, Apple spooked investors by warning that fiscal third-quarter revenue could suffer as much as $8 billion due to a number of challenges, including supply chain constraints.
“Covid is difficult to predict,” Apple CEO Tim Cook said in a meeting with analysts after the company reported its second-quarter financial results.
Foxconn Chairman Liu Young-way said the company has seen a more limited impact from the shutdowns than anticipated and as a result, it has raised its outlook for the current quarter and full year, Nikkei said. According to Nikkei, key production facilities are operating at normal levels and product development is still ongoing.
The comments above don’t necessarily mean that Apple is completely free from supply chain constraints caused by Covid-19 lockdowns or chip shortages, but it does suggest that the situation is at least improving for iPhone production. Apple’s iPhone business generated $50.57 billion in revenue in the second quarter, a large portion of its total revenue of $97.28 billion.
According to the report, Young-way said: “The overall impact of the network lockdown on Foxconn has been rather limited. “You can see our April revenue and May performance was also better than we expected.”
Read more from Nikkei Asia.
CLOCK: Apple says supply chain problems will continue
