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
Netanyahu: “Today it’s Tel Aviv, tomorrow could be New York”
Since Friday, Israel has struck key nuclear and military facilities in Iran, killing top commanders and nuclear scientists. In response, Iran has launched barrages of missiles.
Seeking to explain the strikes to U.S. citizens, Israel’s key ally, Prime Minister Benjamin Netanyahu gave lengthy interviews to American media, describing the offensive as “a battle of civilization against barbarism.” In his conversation with ABC News, he defended the attacks to “disarm” Iran and likened Supreme Leader Ali Khamenei to “a modern-day Hitler.”
When asked about U.S. President Donald Trump’s reported veto of an Israeli plan to assassinate Khamenei over concerns it would escalate the conflict, Netanyahu replied: “It won’t escalate the conflict — it will end the conflict.”
He did not confirm whether Khamenei is an Israeli target. “Israel does what it must,” Netanyahu simply stated.
He accused Khamenei of harboring “insane, antisemitic fanaticism.”
“He’s like a modern Hitler. He won’t stop, but we’ll make sure he doesn’t have the means to act on his threats,” Netanyahu added.
“Iran wants an ‘eternal war,’ and they’re pushing us to the brink of nuclear conflict,” he warned.
“What Israel is doing is actually preventing it — ending this aggression. We can only do that by confronting the forces of evil,” the Prime Minister continued.
“Today it’s Tel Aviv, tomorrow it could be New York,” Netanyahu told ABC’s Jon Karl.
To the Israeli leader, pushing back against Iran’s nuclear ambitions is “preventing the most horrific war imaginable and… bringing peace to the Middle East.”
“That will only be possible if Iran is defeated,” he concluded.
International
Panama supports Morocco’s autonomy plan as sole solution for Western Sahara dispute
Panama, a non-permanent member of the United Nations Security Council, has declared Morocco’s autonomy initiative as “the most serious, credible, and realistic basis” and “the only solution for the future” to resolve the regional dispute over the Moroccan Sahara.
This position was expressed in a joint statement signed on Monday, June 16, in Rabat, following a meeting between Morocco’s Minister of Foreign Affairs, African Cooperation and Moroccan Expatriates, Nasser Bourita, and the Minister of Foreign Affairs of the Republic of Panama, Javier Martínez-Acha Vásquez, during his official visit to Morocco.
At a press conference following the meeting, the Panamanian foreign minister emphasized that the autonomy initiative proposed by Morocco in 2007 “should be the only solution for the future,” reiterating Panama’s clear support for the plan as a means to reach a lasting resolution to the dispute.
Panama’s support comes after the country severed all ties with the so-called “SADR” (Sahrawi Arab Democratic Republic) in November 2024.
In the same joint statement, Morocco and Panama reaffirmed their commitment to the principles of sovereignty and territorial integrity.
Both nations also reiterated their shared desire to further strengthen bilateral relations, highlighting the excellent ties of friendship and solidarity between the two countries. They agreed on the need to continue consultations and assess their cooperation in order to enhance and deepen it.
The two nations affirmed that their cooperation is based on the principles of peaceful coexistence, democracy and good governance, solidarity, transparency, mutual respect, human rights, and international humanitarian law, as well as the rejection of unilateral sanctions.
Internacionales
Tropical storm Erick expected to become hurricane as it nears southern Mexico
The National Hurricane Center (NHC) reported that Tropical Storm Erick is currently located 460 kilometers (about 285 miles) off the coast of Puerto Ángel, Oaxaca, with maximum sustained winds of 75 kilometers per hour (around 46 mph).
According to the latest forecast, Erick is expected to strengthen into a hurricane later tonight or early Wednesday. Heavy rains are forecast for the southern states of Guerrero, Oaxaca, and Chiapas.
Mexican President Claudia Sheinbaum urged residents in coastal areas to stay alert and follow updates from Civil Protection authorities.
“There is a chance that it could become a Category 2 hurricane and make landfall tomorrow, Wednesday. We ask everyone along the coasts of Chiapas, Oaxaca, and southern Guerrero to stay informed,” she posted on social media platform X.
Due to its geographic location, Mexico faces annual threats from tropical cyclones on both its Pacific and Atlantic coasts, typically between May and November.
In October 2023, Hurricane Otis rapidly intensified to a Category 5 storm before striking the port city of Acapulco, leaving widespread devastation, over 50 dead, and around 30 missing.
More recently, in September 2024, the Pacific coast was hit twice by Hurricane John, which reached Category 3 and caused at least 15 fatalities, mostly in Acapulco.
Netanyahu: “Today it’s Tel Aviv, tomorrow could be New York”
Panama supports Morocco’s autonomy plan as sole solution for Western Sahara dispute
Tropical storm Erick expected to become hurricane as it nears southern Mexico
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