- Apple Inc's AAPL crucial supplier Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group, has brought the largest iPhone plant to about 90% of anticipated peak capacity.
- The update implied Apple's biggest production partner had secured enough workers despite a Covid resurgence and recent staff uproar, Bloomberg reports.
- Foxconn doled out bonuses to attract new workers and convince those still there to stay on.
- Foxconn reportedly aimed for the plant to resume total production around late December to early January while also remaining cautious regarding the pandemic resurgence, Reuters reports.
- Foxconn's plant in the central Chinese city of Zhengzhou operated with 200,000 staff, or about the average staffing level, a local daily reported, citing Foxconn executive Vic Wang.
- As of December 30, the plant shipped at 90% of the peak capacity forecast at the start of last year.
- Foxconn's speedy bounce-back bodes well for the production of Apple's marquee product as it gears up for the Lunar New Year shopping season.
- A nationwide Covid flare-up after Beijing abruptly dropped most Covid Zero-era curbs had clouded the prospects for manufacturers like Foxconn, which required armies of workers to keep factories buzzing.
- The recent outburst followed weeks of turmoil at the Zhengzhou plant known as iPhone City, which produces the vast majority of high-end iPhone 14 Pro and Pro Max devices.
- The phenomenal disruption, in turn, fueled concerns about iPhone production over the critical holiday period.
- Price Action: AAPL shares closed higher by 0.25% at $129.93 on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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