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Apple Inc. AAPL iPhone’s November shipments from one of its oldest and largest suppliers, Foxconn’s HNHPF Zhengzhou plant, may see up to a 30% decline amid COVID-19 woes.
What Happened: Foxconn is looking to boost production at its Shenzhen factory to make up for the shortfall, Reuters reported citing an anonymous source with direct knowledge of the matter.
Apple and Foxconn did not immediately respond to Benzinga’s request for comment.
See Also: Apple’s New MacBook Pros With Homegrown Chips Won’t Launch Until Early Next Year But Delay Is Justified: Gurman
Zhengzhou plant, on the weekend, was rocked by discontent over tighter COVID curbs to contain the spread of the virus within the facility, forcing many of its about 200,000 workers to flee the site. Foxconn said the situation was being controlled and would coordinate backup production with other plants to reduce potential impact.
Taiwan-based analyst Ming-Chi Kuo also said Foxconn originally planned to reduce iPhone production capacity gradually, but after its Zhengzhou iPhone plants entered closed-loop production without warning, those plans will likely be postponed. The analyst said more than 10% of global iPhone production capacity is currently affected due to the plant’s closure. However, Kuo expects a limited impact on fourth-quarter iPhone shipments.
Apple, in late September, confirmed that it would begin production of its newest iPhone series in India, days after Foxconn joined hands with Indian oil-to-metals giant Vedanta to manufacture semiconductors in the country.
Price Action: Apple closed Friday’s session up 7.56% at $155.74, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.