Foxconn would be taking production of iPhones from China due to Coronavirus

Foxconn would be taking production of iPhones from China due to Coronavirus

Foxconn would be taking production of iPhones from China due to Coronavirus

Last Friday (7/2), we reported that some Apple Stores in China will remain closed at least until February 15th due to the outbreak of Coronavirus in the country. The measure was taken by the company after two more postponements – with that, the closed doors will complete three weeks.

In addition to retail, factories Apple’s partners in China are also being affected by the outbreak. According to past information, AirPods [Pro] and the supposed «IPhone 9» (which may be launched in March) would have already suffered negative impacts on production, causing Apple manufacturers to adopt a “plan B”.

According to a new report by the TF International Securities analyst Ming-Chi Kuo, released by AppleInsider, it is possible that Foxconn and the Pegatron (two of the biggest suppliers of Apple) have transferred part of the production of iPhones and others gadgets to its factories in India is at Taiwan.

Although positive, Kuo points out that the production capacity of these facilities is limited, so that decision would not be the solution to the manufacturing problems that Apple currently faces in China due to the Coronavirus outbreak.

There, Pegatron’s factories have already been affected: in Shanghai, work resumed last week, with a labor rate of approximately 90%. Despite this, Kuo expects that number to drop to 40-60% this month – less than the “ideal” level to continue production.

However, the analyst believes that the most critical installation is Foxconn’s in Zhengzhou, where most iPhones and AirPods are assembled. According to new news from Reutershowever, that same installation would have restarted its activities today, however with only 10% of the total labor force – a number below the minimum for the ideal resumption of production.

Today’s news meets information that the return of Foxconn’s activities on Monday would have been canceled by the Chinese government – which is not the case. Indeed, some factories remain closed, but Chinese officials have not prevented the company from resuming production, as previously reported.

via AppleInsider