Foxconn, a major assembler of Apple iPhones, said the impact of China’s Covid lockdowns on its operations was not as severe as expected, Nikkei Asia reported Tuesday.
In late March, China ordered a series of lockdowns in some major cities after seeing an increase in coronavirus cases. Shortly after, Foxconn announced it would suspend operations in Shenzhen, a Chinese manufacturing hub where the company produces iPhones, iPads and Macs.
Apple spooked investors last month by warning that fiscal third-quarter sales could be hit by up to $8 billion due to several challenges, including supply chain constraints.
“Covid is hard to predict,” Apple CEO Tim Cook said on a conference call with analysts after the company released its second-quarter fiscal results.
Foxconn Chairman Liu Young-way said the company has seen a more limited impact from the shutdowns than it had anticipated, and has raised its outlook for the current quarter and full year. accordingly, Nikkei said. Major manufacturing facilities operated at normal levels and product development is underway, the company said, according to Nikkei.
The comments don’t necessarily mean Apple is completely immune to supply chain constraints caused by Covid-19 lockdowns or chip shortages, but it does suggest the situation is at least improving for the company. iPhone manufacturing. Apple’s iPhone business generated $50.57 billion in revenue in the second quarter, the bulk of its $97.28 billion in total revenue.
“The overall impact of the lockdown on Foxconn is rather limited,” Young-way said, according to the report. “You can see our revenue in April, and the performance in May is also better than we had estimated.”
LOOK: Apple says supply chain issues will continue
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