Apple's Largest iPhone Factory Recovers From Covid OutageApple's Largest iPhone Factory Recovers From Covid Outage

Apple’s Largest iPhone Factory Recovers From Covid Outage

Apple’s Largest iPhone Factory Recovers From Covid Outage: Chinese official media reported that production at the largest iPhone facility in the world, which has been hampered since October by Covid-19 limitations in China and worker protests, is now operating at almost total capacity.

At the end of December, Foxconn, a supplier to Apple (AAPL), stated that its expansive campus in central China was operating at 90% of its intended manufacturing capacity. An interview with Wang Xue, the facility’s deputy general manager and self-proclaimed “iPhone city,” was supported.

He added, “Right now, the order books seem fantastic, and the orders will peak from now until a few months after Chinese New Year.” On January 22, the Lunar New Year will start. Has asked Foxconn for comment about the report, but the company has not yet done so.

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Following supply delays brought on by Covid limitations, the business stated last month that it was attempting to restore production. According to Wedbush Securities analyst Daniel Ives’ estimate from November, the hiccups in Zhengzhou cost Apple almost $1 billion in lost iPhone sales each week.

A November UBS report stated that the waiting period for the most recent 14 Pro and 14 Pro Max in the United States reached 34 days right before the Christmas holidays due to supply chain issues in China. The wait time was deemed “excessive” by the UBS analyst.

An executive in charge of Foxconn’s logistics was cited separately by The Henan Daily as saying that the amount of inbound and outbound shipments in the first two days of January had risen to the most outstanding level in a year. One month after China abruptly ended three years of pandemic controls, sparking a significant wave of Covid infections, reports of a nearly full resumption of production were made public.

According to a Wall Street Journal story, a letter from Foxconn founder Terry Gou reportedly played a significant part in encouraging Chinese policymakers to expedite efforts to roll back the nation’s Covid-19 restrictions. Gou was cited as saying that tight Covid regulations would jeopardize China’s leadership role in international supply chains.

According to Gou’s office, “the report and its substance” are false. According to Wang, there are currently roughly 200,000 employees working at iPhone City, as reported by the Henan Daily. He stated that the employees were individually qualified for bonuses of up to 13,000 yuan ($1,883) per month without mentioning their base salary.

Foxconn’s problems began in October when employees quit the Henan area of the central China campus over worries about the working environment and food shortages connected to Covid. As a result of the staff shortage, bonuses were provided to employees.

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However, when the newly hired personnel claimed management breached their commitments in November, there were violent protests. Security guards and workers got into a fight before the corporation eventually gave the workApple’s000 to leave the job. Analysts predicted that Apple’s supply chain diversification away from China would accelerate due to the production problems at iPhone City.