Apple iPhone maker Foxconn sees November revenue drop by 11% after Covid outbreak in factory - Proactive Investors USA

Foxconn Technology Group reported an 11% driblet successful November gross from a twelvemonth earlier aft the institution struggled with a Covid outbreak and idiosyncratic unrest astatine Zhengzhou, the world’s biggest iPhone assembly tract successful China.

The Taiwan-based shaper said November gross totaled 551.1 cardinal caller Taiwan dollars ($14.7 billion), down much than 29% compared to October and implicit 11% little erstwhile compared to November 2021.

In a statement, Foxconn said the autumn was owed to “production gradually entering off-peak seasonality and a information of shipments being impacted by the epidemic successful Zhengzhou.”

READ: Apple seeking mode retired of China aft protestation disruptions

According to media reports, successful precocious October, the Zhengzhou mill was deed with an outbreak of Covid and Foxconn stretched to get it nether power with measures specified arsenic investigating and isolating infected workers.

The Wall Street Journal reported that successful caller weeks, thousands, if not more, workers fled the tract partially arsenic they feared catching Covid.

Last month, employees clashed with information unit astatine the Zhengzhou plant, portion immoderate workers took to societal media to slam what appeared to beryllium a hold successful bonus payments.

Foxconn did not code the idiosyncratic unrest successful its November gross update but said the Covid outbreak was nether control. “At present, the wide epidemic concern has been brought nether power with November being the astir affected play by the epidemic,” the institution said.

Separately, successful effect to strained proviso lines successful China, wherever Fortune outlined implicit 90% of Apple’s products are presently produced, Apple is turning to partners successful India, Vietnam, and different Asian countries successful a bid to trim dependency connected Chinese-based manufacturers, including Foxconn.

Contact the writer Uttara Choudhury astatine uttara@proactiveinvestors.com

Follow her connected Twitter: @UttaraProactive