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iPhone production to fall 30% in Foxconn's largest factory due to strict COVID curbs

Apple boss Tim Cook visits an iPhone production line in Zhengzhou China Photograph AP
Tim Cook visits an iPhone production line in Zhengzhou, China | Credits: AP

China's Zhengzhou district is known to be largest iPhone manufacturing hub globally. However, amid strict curbs due to China's zero-COVID policy, the iPhone production in the region could slump down by as much as 30 percent.

Zhengzhou has been under strict lockdown since mid-October which has affected around one million residents in the district. Around 200,000 of those work in Foxconn's Zhengzhou plant. Several workers fled the district due to stringent conditions after all the non-essential businesses were shut down and people were ordered to stay at home.

The manufacturing slump comes ahead of the holiday season which sees an increase in demand for consumer electronics.

Foxconn is boosting production at its other factory in Shenzen city in order to compensate for the shortfall. The company said to Reuters that it is bringing the situation under control and would coordinate back-up production with other plants to reduce any potential impact.

Foxconn is the largest manufacturer of iPhones in the world, contributing 70 percent of all the shipments around the globe. Apple is also a key client for Foxconn as it accounts for more than 45 percent of the company's revenue as well.

Source: Reuters

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