By Senad Karaahmetovic
Foxconn (TW: 2354 ), Apple’s (NASDAQ: AAPL ) biggest supplier, could be forced to cut its iPhone production by as much as 30% at one of its biggest factories in November due to new measures in China to fight Covid-19, Reuters reports.
The company’s key Zhengzhou plant has been severely hit by new measures, prompting “several workers” to leave the factory. As a result. Foxconn is working to increase iPhone production at another factory located in Shenzhen city.
While Foxconn said the situation remains under control, its shares still fell by 1.4% on Monday.
The latest Covid-19 wave also forced Walt Disney (NYSE: DIS ) to close its resort in Shanghai. The park closed abruptly, instructing all visitors to stay in the park until they return a negative test.
"With the zero-COVID policy here to stay, we think the economy will continue to struggle heading into 2023," said Zichun Huang, economist at Capital Economics, according to Reuters.
"We don't expect the zero-COVID policy to be abandoned until 2024, which means virus disruptions will keep in-person services activity subdued.”
Apple and Disney shares are down 0.5% and 0.8%, respectively, in Monday pre-open trading.
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