iPhone Output at Foxconn's Biggest Plant Could Fall by 30% Next Month Due to China Lockdowns

[MacRumors]

iPhone production at one of the world's largest factories could fall by as much as 30% next month due to tightening COVID-19 restrictions in China, according to a new report today.

Apple manufacturing partner Foxconn's main Zhengzhou plant, which employs about 200,000 people, was hit by the stringent curbs after an outbreak at the factory, which led the city of about 10 million people locked down as a result.

It's not clear how many cases of the virus have been identified, but the outbreak forced staff to lock down at the workplace, which has reportedly caused unrest and even led some employees to escape by jumping a fence outside the plant.

Foxconn is working to boost iPhone production at another factory in Shenzhen city to make up for the shortfall, a person with direct knowledge of the matter told Reuters. A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing.

Last week, Foxconn announced it was banning all dine-in catering at the Zhengzhou plant and would be requiring workers to eat meals in their rooms. At the same time, the Taiwanese company said it was maintaining normal production as it ramped up iPhone 14 assembly ahead of the busy holiday period.

Localities in China continue to grapple with President Xi Jinping's rigid zero-COVID policy, which imposes strict measures including anything from regular testing and travel restrictions to full-scale lockdowns.

Factories are usually able to continue to operate under a "closed loop" system where staff live and work on-site, but the arrangements have caused various problems, including workers expressing anger on social media at their treatment and living conditions.

Article Link: iPhone Output at Foxconn's Biggest Plant Could Fall by 30% Next Month Due to China Lockdowns

 

[no_idea]

Cracks me up that we are still having lock downs…they don’t work folks.

 

[DelayedGratificationGene]

Lol!….another “person with direct knowledge of the matter” news report. Again with this FUD nonsense? Oh what the media has to do to get people to click. Smh

 

[TheYayAreaLiving 🎗️]

Apple seriously needs to get out of China. What is it going to take?

 

[Zaft]

At this point it’s just China trying to control its people and showing who’s daddy…

 

[one more]

I thought we were past Covid emergency, as most countries now just let it run its course and have abolished most of the previous restrictions.

 

[WiiDSmoker]

Don’t fret. They just won’t make anymore Plus.

 

[DelayedGratificationGene]

Perfect timing for some media stock manipulation. “The time is NOW to create some FUD. Emotions are running high people so get to work!”

 

[xxray]

And with the iPhone Pro models already being in tight supply… wow.

 

[spcopsmac21]

Cracks me up that we are still having lock downs…they don’t work folks.

I’m glad you know more than professionals. Might also tell your dentists you can chew on fluoride tablets to not get cavities.

 

[Mr. Dee]

You know how the virus is still penetrating these closed loops? Someone is being reckless. It’s usually someone in management who usually the ‘do as I say and not as I do’ type. They are not wearing their mask outside of work or
taking necessary social distancing when away from the compound. After contracting the virus outside they bring it to the factory and don’t even practice proper safety measure and spread to those poor workers who end up suffering for it.

Those workers are doing their job, they travel from faraway provinces so they are not gonna do anything to jeopardize their livelihoods.

 

[performa_6400]

The rest of the world has figured out how to move on, China needs to follow suit. Otherwise supply shortages will continue to be a thing, as will inflation.

 

[james2538]

I wonder how much longer China is going to continue with its zero-COVID approach. It’s becoming increasingly impossible to maintain with how easily spread the current variants are.

At this point it’s fairly obvious companies should look to move manufacturing elsewhere.

 

[spcopsmac21]

You know how the virus is still penetrating these closed loops? Someone is being reckless. It’s usually someone in management who usually the ‘do as I say and not as I do’ type. They are not wearing their mask outside of work or
taking necessary social distancing when away from the compound. After contracting the virus outside they bring it to the factory and don’t even practice proper safety measure and spread to those poor workers who end up suffering for it.

Those workers are doing their job, they travel from faraway provinces so they are not gonna do anything to jeopardize their livelihoods.

To many people refusing to wear masks who hear they don’t work from people with zero medical experience that say they saw someone say they don’t work.
Stupidity is enjoying a major resurgence within our societies.
The movie idiocracy is becoming a self fulfilling prophecy.

 

[Bustycat]

Heil Winnie. China is proud of zero-COVID.

 

[BvizioN]

I’m glad you know more than professionals. Might also tell your dentists you can chew on fluoride tablets to not get cavities.

Someone does not need to be professional to know certain things, unless completely gullible and believing all sort of trash that comes out of these in power.

 

[metalsiren]

yea China and Zero COVID policy is kind of stupid at this point. Yes I believe in vaccines , but that was the whole point of the main lockdown was to study and build vaccines, now we have to learn to live with it. Even China Disney is shutting down again.......

 

[tdar]

Great!! No just kidding, that would be terrible timing. Just about the time for me to get my new one. This Covid thing really sucks. And because I pray that everyone stays safe, don’t listen to the people who say that it’s all over. Even if they are the president of the United States.

 

[assb10yr]

Expect AAPL below $100 by Jan.

 

[richierich123]

Plz move the factories to India

 

[ShaisGuy]

Wow, so factory employees live on-site? That sounds miserable and dystopian.

 

[chouseworth]

I hope Apple has updated contingency plans for the coming Taiwan crisis and possibly war with China. President Xi can and will shut it all down in a heartbeat.

 

[mitkomitashki]

China is joking with the market again. Apple and all other Western companies need to get out of China as soon as possible!

 

[ProfessionalFan]

Plz move the factories to India

Are they ready to go at the scale Apple needs?

 

[ELman]

Apple seriously needs to get out of China. What is it going to take?

Sadly in the U.S. we are more reactive that proactive. It will take China cutting the U.S. off before the politicians wake up.