Apple has a large part of its production in China, being a large dependent of the country to make its sales. Due to the great Corona outbreak that is taking place, the company's trade can be affected considerably. This is because Foxconn, responsible for the manufacture of the iPhone and Airpods, came to close due to cases of the disease in Chinese cities.
Only 10% of the workforce returned to Foxconn factories
In order not to impact production and sales much, Foxconn received an endorsement to resume production at the Zhengzhou plant, according to the Reuters website. According to reports, only 10% of the workforce has returned to work, approximately 16,000 people. A while later, it was reported that production in Shenzhen was also allowed to partially return.
Dan Ives, a market analyst, said that probably in the weeks when the factories were stopped, there could be a decrease in sales of approximately 1 million iPhones. In addition, according to the professional, the production time interrupted is equivalent to 3 to 5 million iPhones less in the same period compared to the previous year. According to him, the numbers are optimistic and Apple is in danger of losing millions of iPhones if the production in the factories continues like this.
In the case of Airpods Pro headphones, there has already been a shortage in the market due to the high demand for the product. In other words, the return of the production of True Wireless headphones from the "apple" is urgent and needs to increase even more. Yesterday the companies had the authorization for some of their factories to open to partially resume the main operations.
On the 24th of February all the factories will be able to return
On the 17th, the factories located in areas with a high impact of the Coronavirus outbreak may reopen and on the 24th of February, all the factories may return to operation. Ming-Chi Kuo, an Apple analyst, says that after February 2 (the expected date for the start of production return at the factories), there was a labor return rate of 30% to 40%. According to the professional, in Shenzhen there is an expectation of a return of 20 to 50% of the workforce, a place responsible for manufacturing the new iPhones that will be launched in the second half of this year.
Foxconn said that:
"The welfare of our employees is Foxconn's highest priority. Keeping this in mind, we closely monitor current public health challenges related to Coronavirus and are applying all recommended health and hygiene practices to all aspects of our operations. These measures health and safety are conducted in conjunction with the efforts implemented by the relevant government agencies, our teams at each of our facilities in China are working closely with the respective local government agencies and we continue to do so by implementing our post production schedules "On vacation. For reasons of policy and for reasons of commercial sensitivity, we do not comment on our specific production initiatives."
Coronavirus already has: approximately 40,200 confirmed cases and 909 deaths in China, 319 cases and 1 death outside the country. There are already 24 countries, in addition to China, with cases of infection by the virus.
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Source: cnn, cnbc, WHO
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