Apple (APPL) is facing one of its biggest operational challenges in years, as protests in China roil the tech giant’s supply chain during the holiday shopping season.
According to Bloomberg, Apple supplier Foxconn will produce 6 million fewer iPhone units than anticipated as employees at the manufacturer’s Zhengzhou-based facility demonstrated against China’s ongoing zero-COVID policy. Workers at the 200,000-person plant have called out the policy’s strict lockdowns, complaining about, among other things, a lack of adequate food supplies at the factory.
Shares of Apple fell more than 3% Monday in midday trade.
The protests come as citizens in other Chinese cities rally against the government’s severe COVID restrictions.
For Apple, the protests mean fewer consumers will be able to get their hands on iPhones during the crucial shopping season. More concerning for the tech giant, however, is the fact that the Zhengzhou facility produces the bulk of Apple’s iPhone 14 Pro and iPhone 14 Pro Max models, which start at $999 and $1,199, respectively.