Production of Apple iPhones at a major contract manufacturing facility could drop 30% in November due to coronavirus restrictions, a source told the agency. Reuters.
In Zhengzhou, a Foxconn plant that makes iPhone’s and employs some 200,000 people was rocked by strict measures to curb the spread of Covid-19with numerous employees fleeing the facility, prompting nearby cities to draw up plans to isolate workers migrants returning to their villages of origin.
“There were so many people on the road, as if we were escaping from a famine,” said a worker from Foxconn in his 30s surnamed Yuan, who said he scaled the fences to get out of the plant and return to his hometown of China center, Hebi.
A person with direct knowledge of the matter said the production of iPhone at the plant could fall as much as 30% in November and that Foxconn, based in Taiwanformally Hon Hai Precision Industry Co, is working to increase production at a Shenzhen factory to make up the shortfall.
Foxconn said on Sunday it was monitoring the situation at the Zhengzhou plant and would coordinate the production Back up with other plants to reduce any potential impact.
The growing number of outbreak cases across China has led to a tightening of restrictions and local lockdowns, including in parts of cities like the southern metropolis of Guangzhou, as the economic cost of zero-Covid.
Data released on Monday showed Chinese factory activity unexpectedly fell in October, dragged down by declining global demand and tight domestic restrictions on production. Covid-19, which affected production, travel and shipping in the world’s second-largest economy. (rts)