The tech giant’s key manufacturing hub in Zhengzhou, the capital of east-central China’s Henan province, has been facing operating difficulties due to widespread protests against the strict COVID-19 restrictions and delayed bonuses.
On Monday, a source familiar with the plant’s operations told Bloomberg that Apple could face a shortfall of nearly 6 million iPhone Pro units in 2022.
There has also been huge backlash over Apple restricting AirDrop in China on November 9, only a few weeks before the anti-government protests broke out. The wireless service allows iPhone users to transfer large files to one another quickly, including photos using Bluetooth and Wi-Fi.
The protests, which have turned violent, have mainly been in response to President Xi Jinping’s “zero COVID” policies that have involved strict lockdowns and social restrictions. Historically, AirDrop has helped protesters in authoritarian countries evade censorship.
iPhone users are usually able to turn the feature off, limit it to contacts only, or receive files from “everyone” for an indefinite period of time.
However, after a November 9 iOS “bug fixes” update, users in China were now able to use the third option for just 10 minutes, after which AirDrop reverts to contacts only.
It means that iPhone users who might have received anti-government media from non-contacts in public spaces now actively have to turn the feature on, making it harder for others to share the material anonymously. The change was first reported by Chinese readers of 9To5Mac.
Apple’s ties to China run deep, and the market made the technology company the most valuable business in the world. Almost $16 billion of Apple’s latest quarterly revenue comes from the Greater China region.
A New York Times investigation from May 2021 revealed that Apple has had to make compromises to do business in China, including allowing Chinese state officials to manage computers with Apple users’ data on.
The report claimed that the Chinese government has been passing laws that give it greater leverage over Apple, including forcing it to censor some software in the Chinese version of its App Store.
Apple Insider also reported in December 2021 that the CEO Tim Cook allegedly lobbied Chinese officials to get the best deal for his company, as part of a secret five-year $275 billion deal.
In 2016, when Apple was facing a few regulatory hurdles to do business in China, Cook paid a visit where he signed the deal with the Chinese government, the website reported.
The alleged agreement led to the tech giant working on improving China’s economy and training up its workforce, as well as a string of business deals.
Apple has not specified why it limited AirDrop’s “Everyone” option in China to 10 minutes.
Newsweek has contacted Apple for comment.
