What happened
Shares of technology giant Apple (AAPL +2.65%) were sliding today after it was reported that Foxconn, one of Apple's largest suppliers, had to suspend operations at two of its Chinese factories.
The tech stock was down by as much as 2.1% and had fallen 1% as of 2:13 p.m. ET.
So what
The South China Morning Post reported this morning that two Foxconn facilities have been shut down since April 20, after some employees at the factories came down with COVID-19.
Image source: Getty Images.
China has a very strict zero-COVID policy, which can result in businesses being shut down when new coronavirus cases are found. The country also continues to lock down entire cities, with Shanghai currently under a lockdown order.
Apple, along with other technology companies, is already facing supply chain issues due to COVID, and news of production being suspended at two Foxconn factories is causing some investors to worry that Apple could face additional production slowdowns.
It's unclear at this point whether or not Apple will be directly affected by Foxconn plants being closed and Foxconn itself told Al Jazeera that production had been shifted to other plant locations.
NASDAQ: AAPL
Key Data Points
Now what
It's no surprise that Apple investors are reacting to this news today. Chinese stocks have tumbled over the month as the Chinese government has enacted lockdowns on the city of Shanghai and other parts of the country.
Investors are worried that if lockdowns persist in China it could impact the production of Apple's devices. And with the tech giant set to report its latest quarterly financial results later this week, investors are keeping a close eye on any news that could affect the company.
