Chinese authorities are lifting COVID-19 restrictions in the area where the world’s largest iPhone factory is located. A violent riot broke out inside the facility last week.

Authorities in the central Chinese city of Zhengzhou, home to the world’s largest iPhone factory, lifted tough restrictions in a move analysts called “necessary relief” for Apple and its main supplier Foxconn.

Zhengzhou is home to “iPhone city,” a vast manufacturing campus owned by Taiwanese manufacturer Foxconn that normally houses about 200,000 workers who make products for Apple. Recently, the authorities blocked access to the neighborhoods for five days because the cases of COVID-19 increased greatly.

iPhone shipments could be 20% lower

The Foxconn facility is not included in the city’s urban districts, but the restrictions have affected production and caused a violent revolt by employees. Workers who fought security officers were paid to resign and leave.

Analysts say Foxconn’s production problems will affect the global market. TF International Securities analyst Ming-Chi Kuo wrote on social media that he estimated iPhone shipments could be 20% lower than expected in the October-December quarter.

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