Apple: Violent protests erupt at iPhone factory in China over COVID restrictions, work conditions

Yahoo Finance tech reporter Allie Garfinkle joins Yahoo Finance Live to discuss the protests that erupted at a Foxconn factory in China and how the country's COVID policies are affecting Apple.

Video transcript

RACHELLE AKUFFO: Well, as Dave mentioned, the unrest breaking out of the world's biggest iPhone assembly plant in China yesterday. Now, that protest dragging into today. Workers at Foxconn Technology Group clashing with police over an apparent pay dispute. Now, this comes amid heightened COVID restrictions in China. Yahoo Finance's Allie Garfinkle joins us now with the details. Allie, what's the latest here?

ALLIE GARFINKLE: Hi, Rachelle. So I can't stress enough, just from the top, how rare public unrest like this in China is. And there are two important things to know. The first is that this is inextricable from COVID. This protest is coming as China's zero-COVID policy is ramping up yet again.

That zero-COVID policy is considered the strictest in the world. And we also have to consider that there's reporting that there are positive COVID cases in the factory. That said, the factory has denied it.

It's also important to know that this is inextricable from Apple. This comes two weeks after Apple warned of production delays in China due to those COVID restrictions we just talked about. And you know, we're coming up on Black Friday. It's a big moment for Apple iPhone sales. And analysts, of course, are worried that this is going to affect iPhone supply and subsequently, say, sales.

Analyst Dan Ives sounded off this morning about it and is worried that there could be a gap of as much as two million iPhones that won't be sold because of those delays. This is what he said. "We believe for Black Friday weekend roughly eight million iPhones will be sold down from 10 million in the year ago period with the gap being mostly supply driven." So that's a big deal, Rachelle. And the story is still developing, and I have a feeling it's one we're going to be watching for quite a while.