COVID-19 in China brings Apple’s business to the forefront
Apple stock has gained about 2% in the last month, trailing the S&P gain of nearly 7%.
In recent weeks, the COVID-19 situation in China, a key manufacturing hub for Apple, has deteriorated. This week, violent protests erupted at Foxconn’s flagship plant, with protesters smashing windows and clashing with police.
On e-commerce platforms, the iPhone 14 series has already seen steep price drops, with this being the fastest price drop for an iPhone since its release.
Analysts estimate that impacted China supply issues will have a negative impact on roughly 5% of iPhone sales this quarter.
The resurgence of COVID-19 in China has thrust Apple’s business into the spotlight.
COVID- in China. 19 cases have risen to new highs, just as the country was abandoning its zero-COVID policy, which had fueled optimism in global asset markets.