- Turmoil at Apple Inc’s AAPL key manufacturing hub of Zhengzhou is likely to result in a production shortfall of close to 6 million iPhone Pro units this year, Bloomberg reports.
- Much will depend on how quickly Hon Hai Precision Industry Co Ltd HNHPF operating as Foxconn Technology Group, the Taiwanese company that operates the facility, can get people back to assembly lines after violent protests against Covid restrictions.
- Also Read: iPhone Shipments From China Plant To Decline 30% In November As COVID-19 Woes Hit Apple’s Largest Supplier
- If lockdowns continue in the weeks ahead, it could further curtail production.
- Lockdowns and worker unrest wrecked the Zhengzhou campus for weeks after Covid infections left Foxconn and the local government struggling to contain the outbreak.
- Thousands of staff fled in October after chronic food shortages, only to be replaced by new employees who rebelled against pay and quarantine practices.
- The Foxconn facility produced most iPhone 14 Pro and Pro Max devices.
- Foxconn actively recruited additional employees with help from government officials.
- China’s largest private-sector employer, the Taiwanese company, has years of experience hiring assembly personnel in tens of thousands, particularly during peak season.
- Earlier this month, Morgan Stanley analysts estimated the iPhone Pro model shortfall at about 6 million units this year before the outbreak of violence in Zhengzhou last week.
- Price Action: AAPL shares are trading lower by 2.17% at $144.94 premarket on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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