Apple Inc. ‘s largest iPhone maker, Foxconn, said it is running to restart full production in Zhengzhou, China, which has been hit by COVID-19 restrictions, and downgrade its fourth outlook.
The manufacturer comes after Apple said on Sunday it expected shipments of iPhone 14 Pro and iPhone Pro Max to be lower than expected, as COVID-19 restrictions temporarily halted production at a meeting plant in Zhengzhou, China.
China on Wednesday ordered a commercial park housing an iPhone factory owned by Foxconn to enter a seven-day lockdown, in a bid to ratchet up pressure on Apple as it struggles to appease discontent among workers at the base.
The economic zone of central China’s Zhengzhou airport said it would impose “quiet management” measures with immediate effect, adding a ban on all citizens leaving and the approved car registration permit on the area’s roads.
Foxconn, the world’s largest contract electronics maker, said the provincial government of Henan, where Zhengzhou is located, “has made it clear that, as always, it will fully help Foxconn in Henan. “
“Foxconn is now working with the government in a concerted effort to eliminate the pandemic and resume production at full capacity as temporarily as possible. “
“Lately, the facility is operating at a particularly reduced capacity,” the iPhone maker said in a statement. “Customers will delight in longer wait times to get their new products,” he added.
Foxconn, formerly Hon Hai Precision Industry Co Ltd, is Apple’s largest iPhone manufacturer, accounting for 70% of iPhone shipments worldwide. It manufactures most of the phones at the Zhengzhou factory, where it employs about 200,000 people, has other smaller production sites in India and southern China.
Last month, Reuters reported that Apple’s iPhone production could fall 30% at one of the world’s largest factories next month due to tightening COVID restrictions in China.
After showing “cautious optimism” in the fourth quarter, Foxconn said it would “revise downward” its outlook given the events in Zhengzhou. The company said October sales were up 40. 97 year-on-year, a record for the same period.
(With contributions from Reuters)
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