Apple stock slips as iPhone assembler Foxconn shifts production in China over COVID outbreak

Foxconn, Apple’s leading iPhone assembler, is preparing to move manufacturing to other parts of China after workers began fleeing its main hub to escape a COVID-19 outbreak.

Gloria Li, Ryan McMorrow and Nian Liu for the Financial Times:

City officials on Monday removed workers from the Zhengzhou plant, where staff say the company failed to provide adequate food and a safe work environment during the outbreak, which is testing Apple’s supply chains.

Analysts say the factory complex accounts for about 60% of Foxconn’s iPhone assembly capacity.

“We are in the peak production season right now, so we need a lot of assembly line workers … our company is coordinating spare production capacity at other sites,” a spokesperson for the Chinese state media told Chinese state media. Foxconn plant.

Ming-chi Kuo, an analyst at TF International Securities, estimated that the situation in Zhengzhou affected “more than 10% of the global iPhone production capacity”.

But Kuo said the Covid outbreak was not yet denting the forecast for Apple’s iPhone shipments this quarter. “Foxconn’s production capacity is expected to gradually improve within a few weeks and there should be limited impact on iPhone 4Q22 shipments,” she said.

MacDailyNews takes: God forbid, someone might have a cold.

The average age of Foxconn assembly line workers is 23.

The reactions and excessive reactions to COVID in some places on this confused rock, even today, are convinced of the beggars.

The real virus is panic. – MacDailyNews, March 9, 2020

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