Apple supplier Foxconn says working to resume China production as soon as possible

Taiwan, November 7 (Reuters) – Taiwan-based Foxconn, Apple Inc’s largest iPhone maker, said Monday it is working to resume full production as soon as possible at its main plant in Zhengzhou, China, which has been hit by COVID-19 containment. We lowered our forecast for the fourth quarter.

China ordered an industrial park home to an iPhone factory belonging to Foxconn (2317.TW) to enter a seven-day closure on Wednesday. This is a move to intensify pressure as Apple (AAPL.O) suppliers rush to quell workers. Dissatisfaction with the basics. read more

Central China’s Zhengzhou Airport Economic Zone said it would immediately implement “silence management” measures, including banning all residents from going out and only allowing approved vehicles on roads within the area.

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Foxconn, the world’s largest electronics manufacturer, said in a statement that the government of Henan Province, where Zhengzhou is located, “has made clear, as always, that it will fully support Foxconn in Henan.”

“Foxconn is currently working with the government to eradicate the pandemic and resume production as soon as possible.”

In a statement released at the same time, Apple said it expects iPhone 14 Pro and iPhone Pro Max shipments to be lower than previously expected as COVID-19 restrictions temporarily halt production in Zhengzhou. read more

Apple’s new iPhone 14 went on sale in September.

Foxconn, officially Hon Hai Precision Industry Co Ltd, is Apple’s largest iPhone manufacturer, accounting for 70% of worldwide iPhone shipments. Most phones are made in the Zhengzhou plant, which employs about 200,000 people, but there are other smaller production plants in India and southern China.

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Foxconn, who previously presented “prudent optimism” in the fourth quarter, said it would “revise” its outlook given events in Zhengzhou.

However, according to the company, sales in October surged 40.97 percent from the same period a year earlier, reaching an all-time high during the same period, but declining 5.56 percent from the previous month.

Referring to computing products, smart home appliances, and cloud computing products, he said, “Sales of all four products grew thanks to the launch of new products in October, stable demand for major products, and strong demand from the server market.” and networking products.

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Computing products, smart home appliances, cloud and networking products all saw double-digit growth last month compared to the same period last year, the company added.

The fourth quarter is traditionally a hot season when Taiwanese tech companies compete to supply cellphones, tablets and other electronics in the western market during the holiday season.

Foxconn will report its third quarter results on November 10th.

Report by Ben Blanchard; Daniel Wallace Compilation

Our Standard: The Thomson Reuters Trust Principle.

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