Foxconn, one of Apple’s largest suppliers, is experiencing significant disruptions at its biggest iPhone assembly factory in China, as workers reportedly fled the locked-down facility and city.
Analysts said the chaos at Zhengzhou could jeopardize Apple and Foxconn’s output in the coming weeks. Ivan Lam, senior research analyst at Counterpoint, estimated that between 10% and 30% of iPhone 14 production could be affected in the near term, but he adds, “I think in one to two weeks, things will get back to normal, given the current status.”
Adding to supply chain concerns, Bloomberg reports that China is covertly shutting cities as Covid zero resistance rises. “Officials introduce virus restrictions with few announcements. It’s nearly impossible to eat in a restaurant in Wuhan, the central Chinese city where Covid-19 was first detected nearly three years ago. There are few flights out of Zhengzhou, home to the country’s largest iPhone factory. And many children in the tech hub of Shenzhen haven’t been inside a classroom in weeks.”
As Beijing shows few signs of moving away from its rigid Covid policies, Apple has started to boost production in other countries, including India, to reduce its dependence on China.
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