International
Apple says iPhone production hit by China Covid lockdown
| By AFP |
Apple warned customers would face longer wait times for iPhones with the holiday season approaching, after Covid restrictions in central China “temporarily impacted” production at the world’s largest factory producing the smartphone.
Foxconn, Apple’s principal subcontractor, locked down its massive factory in Zhengzhou last month after a spike in infections — in line with China’s zero-Covid policy.
In a separate statement Monday, the Taiwanese firm said its fourth quarter earnings this year would take a hit from the coronavirus lockdowns.
Panicking workers last week had fled the site on foot in the wake of allegations of poor conditions at the facility, which employs hundreds of thousands of workers.
“Covid-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility located in Zhengzhou, China,” California-based Apple said in a statement late Sunday.
“The facility is currently operating at significantly reduced capacity.”
Despite strong demand for Apple’s products ahead of the holiday season, “we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated”, it said.
“Customers will experience longer wait times to receive their new products.”
Foxconn is China’s biggest private sector employer, with more than a million people working across the country in about 30 factories and research institutes.
But Zhengzhou is the Taiwanese company’s crown jewel, churning out iPhones in quantities not seen anywhere else.
“In a normal situation, almost all the iPhone production is happening in Zhengzhou,” Ivan Lam, an analyst with specialist firm Counterpoint, told AFP.
The company was initially “cautiously optimistic” about its fourth quarter earnings, it said.
“But due to the pandemic affecting some of our operations in Zhengzhou, the company will ‘revise down’ the outlook for the fourth quarter,” Foxconn said in a statement.
“Foxconn is now working with the government in (a) concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible,” the company said.
It did not give any statistical projection for how badly it expected earnings to be hit.
“This is a dark sign of the zero-Covid policy in China impacting production for Apple with Foxconn,” Dan Ives, analyst at Wedbush Securities, told AFP.
“It confirms the Street’s fears with Apple this quarter and will be an albatross on the tech market this week.”
‘We are drowning’
Local authorities locked down the area surrounding the factory on Wednesday, but not before reports emerged of a lack of adequate medical care at the plant.
Multiple workers have recounted scenes of chaos and increasing disorganisation at Foxconn’s complex of workshops and dormitories, which form a city-within-a-city near Zhengzhou’s airport.
“People with fevers are not guaranteed to receive medicine,” a 30-year-old Foxconn worker, who asked to remain anonymous, told AFP.
“We are drowning,” he said.
China is the last major economy wedded to a strategy of extinguishing Covid outbreaks as they emerge, imposing snap lockdowns, mass testing and lengthy quarantines despite the widespread disruption to businesses and international supply chains.
And authorities poured cold water on speculation that the policy could be relaxed Saturday, with National Health Commission (NHC) spokesperson Mi Feng saying that Beijing would “stick unswervingly to… the overall policy of dynamic zero-Covid”.
“At present, China is still facing the dual threat of imported infections and the spread of domestic outbreaks,” Mi said at a press briefing.
“The disease control situation is as grim and complex as ever,” he said. “We must continue to put people and lives first.”
International
U.S. strike in Caribbean kills three suspected drug traffickers
A U.S. strike on a suspected drug-smuggling vessel in the Caribbean killed three people on Saturday, according to Pentagon Chief Pete Hegseth, marking the latest in a series of attacks in international waters.
The United States has deployed ships to the Caribbean and sent fighter jets to Puerto Rico as part of a large military force that Washington says is aimed at curbing drug trafficking.
“This vessel, like all the others, was known to our intelligence for being involved in illicit narcotics smuggling,” Hegseth stated on X. “Three narcoterrorists were aboard the vessel during the attack, which took place in international waters,” he added.
Experts argue that the attacks, which began in early September, amount to extrajudicial executions, even if the targets are known traffickers.
Washington has yet to publicly provide evidence that the targeted individuals were actively smuggling drugs or posed a threat to the United States.
Hegseth said the U.S. would continue “hunting… and killing” suspected traffickers. He also shared video footage of the strike, showing the vessel being hit and engulfed in flames. As in previous videos, sections of the ship were blurred, making it impossible to verify the number of people on board.
The United Nations called on Friday for Washington to halt its attacks.
International
At least 23 killed in Sonora supermarket blast, including minors
At least 23 people were killed and 11 others injured in an explosion at a supermarket in Hermosillo, in the northern Mexican state of Sonora, local authorities reported on Saturday.
“So far, there are 23 confirmed deaths and 11 injured, including minors,” said Sonora Governor Alfonso Durazo in a video message. He added that the injured are receiving treatment in various hospitals across the city.
“I have ordered a thorough and transparent investigation to determine the causes of the incident and assign responsibility where appropriate,” Durazo said.
The explosion occurred at a Waldo’s store in downtown Hermosillo. Local authorities confirmed that the incident was not an attack nor related to any violent act against civilians.
Meanwhile, Mexico City Mayor Claudia Sheinbaum expressed her condolences on X, offering sympathy to the families and loved ones of those who lost their lives.
International
Floods in Central Vietnam leave 28 dead, thousands displaced
The death toll from heavy rains and flooding in central Vietnam has risen to 28, with six people reported missing and 43 injured, local newspaper VnExpress reported Friday night.
More than 22,100 homes remain flooded, primarily in the cities of Hue and Da Nang. Floods and landslides have destroyed or swept away 91 houses and damaged another 181, the report added.
Around 245,000 households are still without electricity, particularly in Da Nang, where over 225,000 homes are affected.
Additionally, 80 stretches of national highways are blocked or disrupted due to landslides. Authorities expect the flooding to continue for another day or two in the region.
U.S. strike in Caribbean kills three suspected drug traffickers
At least 23 killed in Sonora supermarket blast, including minors
Floods in Central Vietnam leave 28 dead, thousands displaced
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