After China announced a lockdown a few days ago that affected three of Apple’s main manufacturing plants, Foxconn now says it is starting operations at its Zhengzhou plant “as normal.” However, according to a new report, 10,000 workers will be required to undergo mandatory testing for COVID-19, which could pose a “potential risk to global shipments of Apple branded devices.”
Bloomberg reports that the main iPhone plant in Zhengzhou has ordered local authorities to conduct mandatory testing of areas that include the plant and surrounding areas of the city.
Mass testing exercises pose a risk as Chinese officials quickly lock down areas in case of positive test results. More than 30 Taiwanese companies this week, including iPhone assembler Pegatron Corp. and laptop maker Quanta Computer Inc., have halted production at electronics hubs in eastern China to comply with local Covid-related restrictions, posing additional challenges to an already fragile global economy. technological supply chain.
While Foxconn is trying to catch up on iPhone production, analyst Ming-Chi Kuo warns that “a potential supply disruption has become a structural risk that Apple and investors cannot ignore for the foreseeable future.”
Unlike other countries, China is banking on a zero-tolerance approach to COVID-19, including quick lockdowns if even a small number of people test positive, according to Bloomberg. Foxconn said it is complying with government measures:
Foxconn is complying with local government measures to combat Covid. Operations in Zhengzhou are going well now.
Ming-Chi Kuo said yesterday that shipping dates for some Apple products have shifted following the lockdown in China. While the high-end MacBook Pro is getting harder to find, the iPhone SE 3 is still widely available, indicating weak demand for the product.
With mandatory testing for COVID-19 in Zhengzhou, we’ll have to see how long China’s main iPhone factory will be up and running as usual.
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Foxconn has officially announced that its Zhengzhou iPhone plant is now operating as normal. However, the potential supply disruption has become a structural risk that Apple and investors cannot ignore for the foreseeable future.
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) April 14, 2022
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