iPhone production in China could drop by 30% due to COVID-19 and new restrictions
According to Fubon Research, Foxconn produces approximately 70% of all iPhones (which accounts for 45% of the Taiwanese company’s profits). The factory in Zhengzhou assembles most of Apple’s smartphones. And as reports Reuters, due to new restrictions related to COVID-19, this figure may decrease significantly.
Currently, 200,000 people work at the plant. Due to dissatisfaction with the new “Сovid” restrictions, some workers even quit. The publication’s unnamed source indicates that the plant’s productivity could drop by 30% next month.
The Chinese authorities are very strict with outbreaks of the coronavirus, which is why restrictions are imposed heavily on manufacturers. Currently, it is allowed to work in a “closed loop”, when the plant’s employees do not leave its territory. Of course, this leads to some problems.
On October 19, it was forbidden even to eat in the canteens on the territory of the factory, due to which the workers are forced to eat in the dormitories. In social networks, they expressed their disappointment regarding their treatment and the corresponding provision.
For its part, Foxconn does not disclose whether there have been new outbreaks of COVID on its production lines and demonstrates on its website that the workers are fine.
These are not the first problems for Apple’s production lines. Recently, Quanta Computer, which makes laptops for Cupertino, has also faced worker strikes due to pandemic-related restrictions and “closed” working conditions.
All this overlaps with the “prime time” for electronics manufacturers in the run-up to the holidays. According to Foxconn, the situation was resolved. But additionally, the company plans to compensate for the problems with lines from another factory in Shenzhen, where similar rules have also been implemented.
Apple has not commented on the situation.