Apple supplier hopes to resume 50% of production by end of February

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Foxconn employees accused of $43 million iPhone scam
Tim Cook meeting with a Foxconn employee in China.
Photo: Apple

Apple contract manufacturer Foxconn hopes that it can resume half of its ordinary production quantities by the end of February, a new Reuters report claims.

As with other companies in Apple’s supply chain with factories in China, Foxconn has been hit hard by coronavirus. It was forced to shutter two of its main iPhone-producing factories in China. When the most critical one reopened, it did so with fewer than 10% of its usual workforce.

In March, Foxconn hopes to be able to resume 80% of its usual production. This is according to a source with “direct knowledge of the matter,” relaying internal targets from Chairman Liu Young-Way.

“Shipments will be affected, but it’s too early to give an exact number,” the source noted. “We might still have a chance to make it with overtime, but we also need to monitor consumer sentiment to come for the end products.”

More than 1,000 people have so far died from coronavirus in China. Cases continue to emerge in other countries around the world as well. Coronavirus deaths in China now surpass the number of people who died from the 2002-3 SARS epidemic. That outbreak killed 774 people worldwide.

Apple, which relies on Chinese manufacturers to produce most of its products, has had its own setbacks from coronavirus. In addition to problems with factories closing, Apple has also temporarily closed Apple Stores in the country. Apple stock hasn’t seen a massive drop-off as a result of coronavirus. However, should problems continue to persist into March, it could certainly have an impact.

Source: Reuters