Foxconn’s iPhone plant in China sees a reduction in November shipments
Foxconn’s flagship iPhone factory in China is expected to see further cuts in November shipments after the latest labor unrest this week, a source with direct knowledge of the matter said on Friday, as thousands of workers resigned.
Apple’s biggest iPhone factory in the world is battling tough COVID-19 restrictions that have stoked worker discontent and disrupted production ahead of the January Christmas and New Year holidays, with many workers self-isolating or fleeing their homes the work.
Following Wednesday’s escalation that saw workers and security forces clash, Foxconn could see more than 30% of the site’s production in November affected, compared to plans to make up to 30% after the issues work began in late October, the source said.
The source said the factory is the only maker of high-end iPhone models, including the iPhone 14 Pro, and is unlikely to resume full production at the end of this month. Foxconn, known as Hon Hai Precision Corporation, declined to comment.
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Apple, which said Thursday it has employees at the factory, did not respond to requests for comment Friday. “Labor unrest at China’s Foxconn factory could hit Apple’s iPhone shipments in November,” Victoria Scholar, chief investment officer at Interactive Investor, said as concerns grew over Apple’s ability to deliver products in ‘time off work.
Apple shares were down 1.9% late Friday morning, while the Nasdaq index was down 0.3%. “Apple is still considered one of the most volatile products in the technology sector…However, Apple continues to avoid giving government guidance given the macroeconomic uncertainty ,” Scholar added.
US Best Buy said on Tuesday it expects high-end iPhones to be in short supply in stores this holiday season.
Analysts said the availability of iPhones in Apple stores in the United States during Black Friday shopping was also down from a year ago, and it was taking longer to replenish inventory, as Reuters reported this week.
