Apple's iPhone partner at center of new Chinese Covid lockdown
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A fresh Covid-related lockdown has been imposed in an area of China that includes a massive facility where Apple's (NASDAQ:AAPL) iPhones are built.
Apple's (AAPL) main iPhone maker, Foxconn, is at the center of the lockdown that went into effect on Wednesday and is currently set to last until November 9. According to a report from Reuters, the Zhengzhou Airport Economy Zone in central China imposed the lockdown after 358 locally transmitted Covid cases were reported on Tuesday. That number was more than three times the 95 cases reported on Monday.
Chinese officials said that the lockdown would include "silent measures" in the area, and at the Foxconn plant. Those measures are said to include preventing all local residents from leaving the area, and allowing only approved vehicles to use roads in the region for the next week.
The Foxconn facility employs about 200,000 people and is so massive that it is nicknamed "iPhone City." Reports over the last week have detailed multiple incidents of worker unrest and dissension over travel and other restrictions that have been imposed throughout parts of China as part of Beijing's "Zero Covid" strategy.
Apple (AAPL) didn't immediately return a request for comment.
The lockdown, which includes controlling where Foxconn employees work and live, comes a day after Zhengzhou began lifting some of its Covid restrictions just one day earlier.
Foxconn plays a major role in Apple's (AAPL) iPhone business, and is said to be responsible for producing as much as 70% of all of Apple's (AAPL) iPhones.
Apple (AAPL) doesn't disclose its iPhone unit sales, but last week, the company reported more than $42B in iPhone revenue during its fiscal fourth quarter.