According to an insider, problems at the Chinese Apple supplier Foxconn as a result of the corona restrictions could significantly affect iPhone deliveries in November. Measures to contain the virus could temporarily reduce production of smartphones at the plant in the Chinese city of Zhengzhou by up to 30 percent, a person familiar with the matter told Reuters news agency. Foxconn is therefore working on expanding production at its factory in the southern city of Shenzhen.
The impact on production comes amid the traditionally busy pre-holiday season for electronics manufacturers. Around 200,000 workers are employed at the Zhengzhou site. Apple initially did not respond to a Reuters request for comment. Foxconn, officially Hon Hai Precision Industry, fell 1.9 percent on Monday morning.
China’s economy still faces major challenges in view of Beijing’s “zero corona policy”. The aim of this is to nip any outbreak of the virus in the bud.
The Foxconn plant in Zhengzhou, where several hundred thousand people work in normal times, is one of the most important production sites for Apple’s iPhones. There had been reports of extremely poor conditions in recent days after strict corona measures were imposed in parts of the city. Employees were therefore no longer allowed to leave the premises, but should continue to work. Workers also complained about problems with the food supply.
At the weekend, employees of the Apple supplier fled in large numbers. Videos of workers leaving the company’s factory premises in the eastern Chinese metropolis of Zhengzhou circulated on social media. You can see how people sometimes climbed over fences and escaped across fields with suitcases and belongings. Reuters was initially unable to verify the authenticity of the posts. The city government later released a statement saying that the Taiwanese company Foxconn had promised to improve living and working conditions for any workers who chose to stay. Orderly transport should be provided for others.