Taipei Oct 31 (U.S.): Coronavirus problems at Foxconn’s iPhone assembly plant in Zhengzhou, China, could cut the site’s November production of an Apple device by as much as 30%.
Foxconn, officially Hon Hai Precision Industry Co Ltd, is ramping up production at its Shenzhen factory to make up for the shortfall, according to Reuters.
The Zhengzhou factory in central China, which employs about 200,000 people, was shocked by strict measures to curb the spread of COVID-19 within the site, as many workers fled the facility over the weekend.
The potential impact on production comes amid a traditionally busy time for electronics makers ahead of the year-end holiday season, which is also prime time for sellers like Apple.
Foxconn said Sunday that the situation has been brought under control and that it will coordinate reserve production with other factories to minimize the potential impact. Its share price is down 1.9% today versus a 1.1% gain in the broader market.
Analysts at Taipei-based Fubon Research said this month that Foxconn is Apple’s largest iPhone maker, producing 70% of iPhone shipments globally which in turn makes up 45% of the Taiwanese company’s revenue.
It also manufactures the device in India and southern China, but its plant in Zhengzhou collects the majority of its global production.
FAE