Apple stock falls as Covid escalates in China

📉 On November 29, 2022, Apple shares collapsed by more than 2% due to the escalation of the Covid situation in China. Recall that now China is experiencing a strong increase in the number of cases of coronavirus. Against the backdrop of an increase in cases, the Chinese government introduces severe restrictions that negatively affect various areas of activity. Apple is also affected by the tight Covid restrictions, as Foxconn’s largest iPhone factory is located in China.

It became known that iPhone production in China could drop by 10% due to disruptions at the Foxconn plant. Workers at the Foxconn plant have gone on strike over poor conditions during the plant’s lockdown, and many workers are refusing to work.

From November 30, Zhengzhou authorities plan to mark the restrictions at the Foxconn plant. Apple has lost about 6 million smartphones due to a one-month downtime of the Foxconn plant, according to Bloomberg.

Chinese authorities have said they plan to roll back excessive COVID restrictions due to rising protests across the country. Analysts at Goldman Sachs believe China could end its COVID-Zero policy in April 2023.