Apple iPhone output at major China plant could fall by 30% amid COVID-19 curbs - Reuters - Proactive Investors USA

Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally

Apple Inc (NASDAQ:AAPL) could spot iPhone production drop by arsenic overmuch arsenic 30% astatine 1 of the world's biggest factories adjacent period owed to tightening COVID-19 curbs successful China, a idiosyncratic with nonstop cognition of the substance has exclusively told Reuters.

The newswire said the root noted that shaper Foxconn is moving to boost accumulation astatine different mill successful Shenzhen metropolis to marque up for the shortfall. Foxconn's main Zhengzhou works successful cardinal China, which employs astir 200,000 people, has been deed by discontent implicit stringent measures to curb the dispersed of COVID-19, with respective workers fleeing the tract implicit the weekend.

Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally, which successful crook makes up 45% of the Taiwanese firm's revenue, analysts astatine Taipei-based Fubon Research said this month. It also builds the instrumentality successful India, but its Zhengzhou mill assembles the bulk of its planetary output.

READ: Apple fiscal 4Q net bushed estimates but iPhone gross comes up short

Reuters noted that Foxconn connected Sunday said it was bringing the concern nether power and would coordinate backup accumulation with different plants to trim immoderate imaginable impact. A 2nd idiosyncratic acquainted with the concern said galore workers remained astatine the Zhengzhou works and that accumulation was continuing, it added.

Under China's ultra-strict zero-COVID-19 policies, localities indispensable enactment swiftly to quell outbreaks, with measures including full-scale lockdowns. Factories successful affected areas are often allowed to enactment unfastened connected information they run nether a "closed loop" strategy wherever unit unrecorded and enactment on-site. Businesses person said specified arrangements airs galore difficulties.

Foxconn has not disclosed whether immoderate workers astatine the Zhengzhou tract had been diagnosed with COVID-19, Reuters said. Authorities person since October 19 reported 264 locally transmitted COVID-19 cases successful Zhengzhou, the superior of cardinal Henan province.

Foxconn implemented closed-loop measures successful March and July this twelvemonth astatine its smaller Shenzhen mill arsenic cases successful the confederate metropolis rose.

In May, the Shanghai works of different Apple supplier, MacBook assembler Quanta Computer Inc was besides deed by idiosyncratic chaos aft the find of COVID-19 cases contempt a closed-loop strategy being in place.

Contact the writer astatine jon.hopkins@proactiveinvestors.com