Foxconn is a crucial supplier for Apple and plays a vital role in the production of iPhones. The company’s factories in China are responsible for manufacturing half of all iPhones sold worldwide. Foxconn and Apple have been working together for many years. However, the production challenges brought on by the Covid-19 restrictions have put this partnership at risk. Thankfully, Foxconn expects to resume full production in late December or early January.
Foxconn to fix its manufacturing issues by January
Foxconn has announced that production disruptions caused by Covid-19 restrictions will be resolved by January. This is expected to alleviate stock shortages that have been seen in many parts of the world, particularly for the iPhone 14 Pro and Pro Max models. The company has assured its business partners that it is working to restore production levels to their pre-pandemic state.
Foxconn has reported that its smart consumer electronics business, which includes smartphones, saw a decline in November revenue compared to the previous year due to disruptions at its Zhengzhou factory. The company did not provide further details on the impact of these disruptions.
The Zhengzhou plant has been struggling with strict COVID-19 restrictions, which have led to dissatisfaction among workers regarding conditions at the factory. This has disrupted production of the Apple device ahead of the Christmas and New Year holidays. Unfortunately, these developments are also affecting the relationship between Apple and Foxconn. The company wants to move production to countries such as India and Vietnam due to the problems it has faced. Foxconn and the Chinese government are expected to try to convince the American technology giant to prevent this from happening.
Foxconn said on Monday its overall revenue in the fourth quarter was expected to be “roughly in line with market consensus”, without elaborating. It did not offer a fresh outlook for its various business sectors. The company said last month that revenue in the final three months of this year would be flattish, and that it has a relatively conservative outlook for 2023. read more. Foxconn shares closed flat, in line with the broader market which ended up 0.1%.
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