According to Reuters, Apple’s iPhone production could drop by as much as 30% in the next month at its major supplier’s manufacturing facility as Chinese authorities continue tightening COVID restrictions.
Workers at Apple’s key supplier, Foxconn’s main factory in Zhengzhou, reportedly showed discontent over the strict COVID measures, leading to disruption in production.
Foxconn’s main Zhengzhou plant is one of the world’s biggest factories which hires about 200,000 workers. Source told Reuters that production was continuing at this facility after the incident.
Reuters cited analysts at Taipei-based Fubon Research saying that Foxconn is Apple’s biggest iPhone producer, accounting for 70% of iPhone shipments globally.
The company is now increasing production at its Shenzhen factory to compensate for the shortage.
Under Beijing’s Zero-COVID policies, factories are only allowed to operate if they apply “closed loop” measures, in which workers live and work on-site.
Such arrangements cause difficulties for businesses to operate as normal.
Foxconn prohibited workers from eating at canteens at the Zhengzhou plant on October 19 and asked them to have their meals in dormitories.
Over the weekend, videos posted on Chinese social media show that many Foxconn workers reportedly fled the Apple factory. Footages show workers suffering unbearable conditions in these facilities and scrambling for food.
While most countries coexist with COVID and loosen restrictions to allow businesses and individuals to continue their normal activities, the Chinese regime imposes a strict Zero-COVID policy in an attempt to contain the pandemic.
Authorities use a strict and extreme approach to enforce Beijing’s COVID-controlled measures. Close contacts of a positive case are tracked down and forced to transfer to quarantine sites. Residents are asked to stay in their homes, entire cities are locked down, factories and businesses are required to close, and entertainment venues and tourist spots are closed to the public.
In March and July, Foxconn applied closed-loop measures at its Shenzhen factory as positive cases surged.