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Apple to keep iPhone production flat in 2022


© Reuters. One customer holds the Apple iPhone 13 pro in the green color shortly after its sale at the Apple Store, 5th Avenue in Manhattan. This was March 18, 2022. REUTERS/Mike Segar

(Reuters:) Apple Inc. (NASDAQ:) will keep iPhone production flat for 2022 at around 220 million units. The announcement was made by Bloomberg News Thursday.

An outbreak of COVID-19 in China has kept its financial hub Shanghai largely paralysed by a city-wide lockdown — now in its seventh week. Beijing is stepping up quarantine.

Foxconn’s supply to the iPhone maker has been able keep their workers in an “closed loop” arrangement to reduce the impact on production. But, many in the country are now sounding demand-related warnings because of the lockdowns.

Apple stated that last month, any lockdowns in China, Taiwan or elsewhere in China, from which many iPhone parts are manufactured, may create additional obstacles to supply and demand for the current quarter.

These developments come as investors prepare for a decline in consumer spending on tech gadgets, services, and appliances as the conflict in Ukraine increases the price of oil and food.

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Separately, it was reported Wednesday that Apple had instructed its suppliers to accelerate iPhone development following China’s COVID-19 lockdowns.

Apple didn’t immediately reply to Reuters’s request for comment.