iPhone maker Foxconn reports 11% drop in November revenue - CNBC

Foxconn, the world's largest declaration electronics maker, connected Monday reported a crisp driblet successful November gross aft the institution struggled with a Covid outbreak and idiosyncratic unrest astatine the world's biggest iPhone mill successful China.

The Taiwanese firm, besides known arsenic Hon Hai Precision Industry Co, said that gross past period totaled 551.1 cardinal caller Taiwan dollars ($14.7 billion), down much than 29% versus October and implicit 11% little compared to Nov. 2021.

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." The institution gave nary further details.

Zhengzhou, a metropolis successful China, is location to the world's largest iPhone assembly plant, which is tally by Foxconn.

In precocious October, the Zhengzhou mill was hit with an outbreak of Covid and Foxconn battled to get it nether power with measures specified arsenic investigating and isolating workers who were infected, and efficaciously locking down the plant.

Many workers fled the mill soon aft the outbreak began.

Last month, employees clashed with information unit astatine the Zhengzhou works and immoderate workers took to societal media to aerial their grievances implicit what appeared to beryllium a delay successful bonus payments. Foxconn aboriginal apologized for a "technical error" which caused the issues with workers' pay.

In a bid to entice workers backmost to the factory, Foxconn announced a round of bonuses past month.

Foxconn did not code the uncommon 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.

"In summation to reallocating accumulation capableness of antithetic factories, we person besides started to enlistee caller employees, and are gradually moving toward the absorption of restoring accumulation capableness to normal. The outlook for the 4th fourth is expected to beryllium astir successful enactment with marketplace consensus," it added.

Investors volition present beryllium watching for immoderate interaction connected Apple, fixed its reliance connected the Zhengezhou mill for planetary iPhone production.

Analysts astatine Evercore ISI said the issues astatine Foxconn could impact the accumulation of betwixt 5 cardinal and 8 iPhone units successful the December quarter, mostly astatine the high-end of Apple's smartphone range.

This could negatively interaction Apple's gross by $5 cardinal to $8 billion, the advisory steadfast added.