China has ordered an industrial park that includes the world’s largest Apple Inc AAPL iPhone assembly plant to enter a seven-day lockdown related to rising COVID-19 concerns.
What Happened: According to a Reuters report, China has imposed COVID-19 lockdowns on a region that houses an iPhone factory belonging to Foxconn.
The Zhengzhou Airport Economy Zone in central China has ordered “silent management” measures with immediate effect, which includes stopping all residents from leaving their homes and only allowing select vehicles on roads.
The report indicates that Zhengzhou reported 358 locally transmitted cases on Tuesday, up from 95 on Monday. The lockdown measures are expected to remain in place until Nov. 9.
Why It Matters: The new lockdowns come as Apple ramps up efforts to meet demand for its new iPhones. During the company’s most recent conference call, Apple executives said it’s still dealing with supply constraints related to the company’s high-end iPhones.
Last week, Foxconn said its Zhengzhou factory was impacted by a small COVID-19 outbreak. Foxconn has since indicated that it’s looking to boost production.
Over the weekend, the Zhengzhou facility faced discontent over tighter COVID-19 curbs that aimed to contain the spread of the virus, and many of its 200,000 workers left the site.
Foxconn said the situation was under control and indicated that it would coordinate backup production plans with other factories to reduce potential impact.
AAPL Price Action: Apple has a 52-week high of $182.94 and a 52-week low of $129.04.
Leave a Reply