On December 5, Foxconn, the world’s largest iPhone plant in China, reported a 29% revenue drop for November. The sharp drop came after the company’s chaotic handling of the COVID outbreak and worker unrest.

The Taiwanese company, also known as Hon Hai Precision Industry Co, reported that sales were about $18.05 billion in November, a decrease of more than 29% from October and more than 11% from November 2021.

Foxconn said the drop was because of “production gradually entering off-peak seasonality and a portion of shipments being impacted by the epidemic in Zhengzhou.” The company declined to comment further.

Located in Zhengzhou, Foxconn is home to the world’s largest iPhone assembly plant.

Recently, it has been hit by two rounds of staff walkouts and strong protests.

In late October, Foxconn tried to contain the COVID outbreak by testing and isolating infected employees, besides shutting down the plant. 

Shortly after the outbreak broke out, many employees left the factory. 

December quarter is generally Apple’s biggest quarter. According to the South China Morning Post, Kuo Ming-chi, an analyst covering Apple at TF International Securities, reduced his prediction for overall iPhone shipments for this quarter by a fifth, to between 70-75 million units. 

Shipments of the higher-end iPhone 14 Pro and 14 Pro Max were 15 to 20 million units short.
Evercore ISI analysts predicted that the issues at Foxconn might reduce Apple’s revenue by $5 billion to $8 billion.

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