Coronavirus delays reopening of Foxconn factory in China

Coronavirus delays reopening of Foxconn factory in China

Many workers in China returned to their jobs on Monday after the government extended the Lunar New Year holiday to spread the deadly coronavirus. However, at two Foxconn plants in China where Apple iPhone parts were made, about 10% of the workforce reported working early every week.

Key Foxconn trees are about 300 miles away in Jhangsu Outbreak center Wuhan and Shenzhen are set to return to Hong Kong and are underway, but only after they are ordered by the Chinese government and public health authorities to stop the expansion of plants. Only about 10% of employees – 16,000 people in Zhengzhou and about 20,000 workers in Shenzhen – have returned to their Foxconn manufacturing, Reuters An anonymous source was reported with quote.

The Foxconn factory pair is responsible for much of Apple’s iPhone production. As an extra, over 40 Apple Retail stores across China are closed due to fears of the Coron virus And is not expected to reopen until February 15.

The first American citizen to die of the coronary virus in China

Wedbush Securities analyst Dan Ives expects the unexpected of late will directly hit global shipment of technology giant’s core iPhone and other products.

“Let’s not pinpoint this: If true (not yet confirmed), this production release from China over the weekend will give the system a shake-up and further disrupt the supply chain in both Apple’s original iPhone franchise and AirPods unit production, which is already short this week. Supply is facing up, “Ives said in a research note.

Foxconn said in a statement to CBS Money Watch that the well-being of its employees is “a top priority,” and that “all hygiene and hygiene practices have been implemented in all areas of our operations.” “These include compliance with various government regulations. Agencies, which are notifying its” post-holiday production schedule “.

A spokeswoman for the company has not confirmed whether a plant has reopened or is operating on partial capacity.

“As a matter of policy and a reason for commercial sensitivity, we do not comment on our specific manufacturing initiatives,” Foxconn told a spokesman CBS Money Watch.

Apple did not respond to CBS Money Watch’s request for comment.

Ives expects the plant to delete five million iPhone sales from the second quarter, with the Carnivirus fiasco delaying the plant’s reopening by another two to three weeks. The production of airpods, which were already in short supply during the holiday season, “needs to be significantly ramped up when the factory returns online to meet growing global demand,” Ives said.

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Technology advisory firm Canalis expects all smartphone shipments in China to drop from 40% to 50% in two recent quarters. If factories are producing at the pre-outbreak stage by the end of February, they expect a 20% reduction for PCs.

Apple’s stock plummeted as much as 1.9% of the business early Monday, with Foxconn production delaying the report clearing market value of $ 27 billion. It returns later in the day, trading at around $ 320 a day for some

More than 900 people have died from coronavirus, all three in China. There are more than 40,000 confirmed cases; Over 300 cases have been confirmed in more than 12 cases in the United States beyond China

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