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By Wayne Chang and Juliana Liu, CNN
Production at the world’s largest iPhone factory, halted since October due to China’s covid-19 restrictions and worker protests, is now operating at near capacity, according to a Chinese state media report.
The sprawling campus in central China, owned by Apple supplier Foxconn, is operating at 90 percent of its planned production capacity through the end of December, the Henan Daily newspaper reported on Tuesday. He cited an interview with Wang Xue, deputy general manager of the facility, also known as iPhone City.
“At the moment, order books are seen and orders will peak from now until a few months after Chinese New Year,” he said. The Lunar New Year will begin on January 22.
Foxconn has not yet responded to CNN’s request for comment on the report.
The company said last month it was working to repair production, which had been severely affected by disruptions at the source caused by Covid restrictions. Wedbush Securities analyst Daniel Ives estimated in November that disruptions in Zhengzhou had cost Apple about $1 billion per week in lost iPhone sales. .
According to a November UBS report, the wait time for the last 14 Pro and 14 Pro Max in the U. S. The U. S. hit 34 days just before the holiday break due to chain limitations in China. The UBS analyst described the wait time as “extreme. “
Henan Daily quoted a Foxconn logistics executive as saying that in the first two days of January, the volume of inbound and outbound shipments reached the highest point in a year.
The report of a near-total resumption of production comes a month after China ended 3 years of pandemic control, leading to a massive wave of covid infections.
According to a Wall Street Journal report, a letter from Foxconn founder Terry Gou played a leading role in persuading Chinese leaders to push plans to dismantle the country’s covid-19 policies. Gou cited as a warning that strict covid controls would threaten China’s central position in chains of global sources.
Gou told CNN he “denies the report and its contents. “
Wang quoted Henan Daily as saying that iPhone City has around 200,000 employees at the site lately. Each of the employees was eligible for a maximum of 13,000 yuan ($1,883) consistent with the month in bonuses, he said, without specifying his base salary.
Foxconn’s unrest began in October when staff left the campus, located in central China’s Henan province, due to considerations about Covid-related career situations and food shortages. Without staff, bonuses were offered to staff to return.
But violent protests erupted in November when newly hired staff said control had broken its promises. The staff clashed with the security guards, before the company nevertheless gave them money to resign and leave the site.
Analysts said iPhone City’s production problems would accelerate Apple’s supply chain diversification out of China.
El-CNN-Wire™
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