Foxconn’s largest iPhone manufacturer under COVID lockdown has brought back the record

Foxconn’s largest iPhone manufacturer under COVID lockdown has brought back the record

Foxconn’s largest iPhone manufacturer under COVID lockdown has brought back the record

Foxconn’s Zhengzhou campus, the Chinese company’s largest iPhone production facility, admitted it was facing a new outbreak of COVID-19, but offered assurances that it had had little impact on operations.

respond to Previous Foxconn reported that the company banned cafeteria dining, began paying employees to get away from public transportation, and began requiring workers to move along certain permitted routes through facilities, and Foxconn finally confirmed the restrictions today.

In a statement to south china morning newspaper Foxconn He said A small number at the 300,000-person facility has been affected by the outbreak, and the company is taking steps to comply with pandemic policies. “At present, the epidemic prevention work in Zhengzhou is progressing steadily, and the impact on the group can be controlled.”

The restrictions on the Foxconn facility are not entirely surprising given that parts of Zhengzhou were closed last week To prevent the spread of COVID-19 in the city. According to SCMP, the COVID numbers in Zhengzhou reported on Wednesday indicate 23 new cases among the city’s 10 million residents.

China’s COVID-free policy imposes strict restrictions on travel and movement in areas where even the smallest outbreak of COVID-19 has occurred. For all the supply chain problems that the base has caused around the world, it seems to have a file Much worse effect on China’s economy.

Apple has been affected by the COVID-19 outbreak in China and the country’s stringent COVID prevention policies before. Aside from the onset of the pandemic, Apple faced production delays earlier this year In Shenzhen, the technology center of ChinaAnd again in two factories in Kunshan, west of Shanghai, a month later.

Earlier this year Lockdowns and a general state of economic uncertainty were supposed to repeat this Earlier in the pandemicwhen the iPhone was 12 Delayed by supply chain problems due to the virus outbreak.

Apple’s second-quarter numbers, which cover April when two of its factories closed, appear to be unaffected by shipments 9.9 million phones were reported from China in the second quarter. CNBC said this represented a 25 percent increase over the previous year; Not surprising given that earlier, larger shutdowns had a more direct impact.

fast forward another quarter And there’s a different problem: Device sales are generally declining due to economic uncertainty, and forecasts don’t see an improvement for at least six months.

Instead of worrying about not having enough units, Apple has iPhone 14 production slowed down In response to hesitant demand.

To make matters worse for China and Foxconn, these strict lockdowns may be behind Apple’s push to move more iPhone production to India. JPMorgan Analysts I expected in September that Apple could move up to 25 percent of its hardware production outside of China by 2025. Currently, about 5 percent of Apple devices are manufactured outside of China, with Factories already located in India.

Add to this news from More US trade restrictions On high-tech equipment recently caused Apple to abandon Plans for a new decade With Chinese chip manufacturer YMTC, it’s all around bad news for China’s tech industry. Hopefully for that, Foxconn’s latest shutdown doesn’t spoil the taste in Tim Cook’s mouth. ®

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