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
20240410_mh_renta_728x90
20240426_bcr_censo_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
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
20240410_mh_renta_728x90
20240426_bcr_censo_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
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
20240410_mh_renta_728x90
20240426_bcr_censo_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
“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
20240410_mh_renta_728x90
20240426_bcr_censo_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
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
20240410_mh_renta_728x90
20240426_bcr_censo_728x90
20231124_etesal_728x90_1
20230816_dgs_728x90
20230601_agenda_primera_infancia_728X90
CEL
CEL
SSF
SSF
SSF
“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.”
The new truce plan in Gaza includes “many demands” from Hamas, according to an Egyptian source
The talks held between delegations from Egypt and Israel in Tel Aviv for a truce in Gaza were “largely positive and successful” and included “many of the demands” of the Islamist movement Hamas, an Egyptian security source familiar with the negotiations and another from Hamas reported to EFE on Sunday.
A delegation from Hamas, headed by the member of the political bureau Khalil al-The Hague, is expected to arrive tomorrow in Cairo, mediator in the conflict between Israel and the Palestinian group, to deliver its response to the mediators, according to the Egyptian source, which asked not to be identified by the sensitivity of this issue.
This new proposal, on whose content it did not provide details, “overcomes the obstacles that hinder” the declaration of a truce, a ceasefire, the exchange of prisoners and hostages, as well as the entry of aid into the Gaza Strip.
The possible announcement of a truce “will contribute to the approval of a first phase and to the efforts of the entire international community to consolidate this ceasefire and seek to move to a permanent truce instead of a temporary one,” according to the informant.
On the other hand, a source of the Palestinian Islamist movement, which also asked for anonymity, confirmed to EFE that tomorrow a delegation from Hamas will arrive in the Egyptian capital to present its response to the new Israeli proposal.
The informant added that the proposal includes “reducing the minimum number of kidnapped that Hamas will commit to freeing and eliminating divisions in sections of the Gaza Strip.”
Last Friday, an Egyptian mediating delegation traveled to Tel Aviv to discuss this truce with Israel, while the Jewish State has warned that it will not allow the Palestinian group to delay and has once again threatened to invade Rafah, at the southern end of the strip and where more than a million refugees are overcrowded.
Hamas warns the United Kingdom that if it sends soldiers to Gaza they will be a “legitimate” military target
The Palestinian Islamist group Hamas warned the United Kingdom on Sunday that if it deploys military personnel in the Gaza Strip, after information that they could help in the distribution of humanitarian aid, they will be “legitimate targets” of its armed wing.
“We alert Britain, or any other country, against the deployment of forces on land or on the coast of the Gaza Strip and affirm that they will be legitimate targets for our people and their resistance,” Hamas said in a statement.
The armed group charged against any initiative in the Palestinian enclave that does not have its approval.
The Islamist group responded to the information released on Saturday by the British network BBC, according to which the British Armed Forces could deploy troops to deliver humanitarian aid on the ground arriving in Gaza through the new floating dock that is being built by Israel and the United States.
The public broadcaster indicated that the United Kingdom could be the intermediary to which the United States referred when it said that it would not be the American soldiers, but others, who would distribute the food packages sent by ship from Cyprus and then transferred to Gaza.
Yesterday, the Israeli Army assured at a press conference with international media that international organizations would be in charge of the distribution of humanitarian aid, but did not indicate which ones would have agreed to collaborate.
Although the British Government has not confirmed the news, the BBC affirms, according to anonymous sources, that the Ministry of Defense is considering getting involved with ‘wet boots’ on the ground.
The possible role of the British forces would involve driving the trucks with the help from the landing boats on the floating runway, hundreds of meters long, and delivering it to a safe distribution area on dry land, the station explained.
The London Ministry of Defense reported on Friday, in turn, that the British Navy auxiliary ship RFA Cardigan Bay set sail from Cyprus to provide support for the construction of the temporary dock, which is led by the United States.
This ship will provide accommodation for hundreds of American sailors and soldiers, about whom Washington has made it clear that they will not set foot in Gaza territory.
Nancy Pelosi says that Netanyahu “could not have made things worse” in Gaza
Former President of the United States House of Representatives Nancy Pelosi said that the Prime Minister of Israel, Benjamin Netanyahu, “could not have made things worse” in the conflict in Gaza, in an interview broadcast this Sunday by the BBC.
Pelosi, who on Thursday participated in an event at the English university of Oxford, told the ‘Laura Kuenssberg Program’ that Netanyahu “was never a peace agent” and admitted that she “is not a great fan of his.”
The congresswoman said that what is happening in the Strip “challenges the conscience of the world” and maintained that the impact of famine on children “is almost unforgivable”, while calling the Hamas attack on Israeli territory on October 7 “barbaric”.
“Israel has the right to defend itself, but the way it is doing it is a challenge because Netanyahu has never been a peace agent,” he said.
“I’m not a great admirer of yours; I couldn’t have done things worse than those tens of thousands, or whatever number it is, of dead people, malnourished children and the uncertainty that exists… and that’s what people are talking about,” he said.
Asked if she understood why young people in the United States used controversial tactics when protesting against the conflict, Pelosi opined that “when they go beyond the campuses and block the Golden Gate Bridge, or something else, for a long time, and people can’t go to the doctor or the hospital or anything urgent in their lives, they don’t get support.”
But he added: “How can demonstrations on (university) campuses be criticized? That’s a way of life in the United States.”
On Thursday, the British police evicted two pro-Palestinian protesters who protested during their speech on populism to students from the University of Oxford, while abroad another group criticized her for her defense of Israel and her position on the movement to support Palestine.
