Connect with us

International

Apple says iPhone production hit by China Covid lockdown

Photo: Hector Retamal / AFP

| 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.

Advertisement
20240426_bcr_censo_728x90
20240502_censo_jorge_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
previous arrow
next arrow

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.” 

Advertisement
20240426_bcr_censo_728x90
20240502_censo_jorge_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
previous arrow
next arrow

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. 

Advertisement
20240426_bcr_censo_728x90
20240502_censo_jorge_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
previous arrow
next arrow

“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.

Advertisement
20240426_bcr_censo_728x90
20240502_censo_jorge_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
previous arrow
next arrow

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”.

Advertisement
20240426_bcr_censo_728x90
20240502_censo_jorge_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
previous arrow
next arrow

“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

Devastating floods in Southern Brazil leave dozens dead and missing

The heavy rains in southern Brazil have resulted in catastrophic floods that have left at least 55 people dead and 67 missing in the state of Rio Grande do Sul. This unprecedented climatic disaster has devastated rural areas and severely impacted the state capital, Porto Alegre, this Saturday.

The overflow of watercourses and landslides have disrupted numerous routes throughout the state, affecting nearly 300 localities, many of which are isolated. The catastrophe has affected approximately 377,000 people, including 32,600 who were forced to evacuate their homes and belongings.

The rapid rise in the level of the Guaíba River inundated the historic center of Porto Alegre, one of the largest cities in the south of the country, with a population of nearly 1.4 million. According to the city hall, the river level reached 5.04 meters, surpassing the previous record of 4.76 meters set in 1941, during the worst floods recorded to date.

On Saturday, the city was in a state of chaos, with many streets submerged in water as residents scrambled to evacuate their homes.

Amidst rescue efforts, a major explosion at a gas station in the northern part of the city killed at least two people. The incident occurred when vehicles used in the operations were refueling at the flooded station, sending a thick cloud of smoke into the air.

In many places, long lines formed as people tried to board buses, while those in cars struggled to navigate through the waters. The situation also forced the cancellation of bus arrivals and departures at the city’s main station, located along the swollen Guaíba.

Porto Alegre’s international airport had suspended operations on Friday indefinitely.

In the Navegantes neighborhood in the northern part of Porto Alegre, José Augusto Moraes de Lima called on firefighters to rescue a child trapped in his home, as a leg injury prevented him from evacuating the child himself. “Suddenly, in a matter of minutes, everything was flooded. I lost everything, television, wardrobe, bed, refrigerator,” recounted the 61-year-old merchant.

Continue Reading

International

Russian bombers near Alaska monitored by NORAD

The North American Aerospace Defense Command (NORAD) reported that it detected and tracked two Russian military aircraft operating near Alaska’s airspace in the United States this Thursday. According to the agency, the aircraft remained in international airspace and did not enter the sovereign airspace of the United States or Canada.

As detailed by the Russian Ministry of Defense, the nuclear bombers were escorted by at least one Su-35S and one Su-30SM during the mission. One of the planes was featured in a video published by the Russian news agency RIA Novosti, filmed aboard a Tu-95MS. Russia stated that the two planes carried out an 11-hour mission over the neutral waters of the Bering Sea, near the western coast of Alaska, escorted by armed Flanker fighters and, “at certain stages of the journey, strategic missile bombers accompanied by fighters from foreign countries.”

The map shows the route taken by the Russian planes (Photo: Arte O Globo) It’s worth noting that the Tu-95 model was launched in 1954 but did not enter service until 1956, and is currently used in the Naval Aviation units of the Russian Air Force and the Air Force of the Russian Army, as well as in the Indian Air Force. According to the specialized website Air Force Technology, the model is even older: its first flight took place in 1954, and the Tu-95 entered service just two years later.

The aircraft can reach a maximum speed of 650 km/h and has a flight range of 6,400 km. This Tupolev periodically carried out long-range patrols in NATO countries and the airspace of the United States until the end of the Cold War. In July 2010, two Tu-95MS Bear-H bombers set a new record for flight duration, with 40 hours of patrol over three oceans.

Continue Reading

International

Ecuador declares state of emergency in five provinces to combat organized crime

The Ecuadorian government has declared a state of exception in the provinces of El Oro, Guayas, Los Ríos, Manabí, and Santa Elena for 60 days to combat organized armed groups amid escalating hostilities, according to Executive Decree 250 published on Tuesday.

The Armed Forces and National Police are jointly working to “maintain sovereignty and the integrity of the state.”

With this measure, the right to inviolability of the home has been suspended, meaning security authorities are permitted to conduct inspections, raids, and searches on properties where they believe members associated with armed groups may be hiding.

Authorities will also seize “materials or instruments” that could be used to commit crimes to neutralize threats.

In response to the criminal activity in the territory, the government will also establish an Anti-Criminal Investigation Force in the coming days aimed at reducing intentional homicides.

The national director of Crimes Against Life, Violent Deaths, Disappearances, Extortion, and Kidnapping of the National Police (Dinased), Freddy Sarzosa, noted that the main cause of criminal violence is linked to drug and arms trafficking.

Continue Reading

Trending

Central News